Last week we discussed for subscribers the patterns unfolding in Ford (F) and General Motors (GM). With regard to Ford, we noted that the current outlook could press the stock into the 15.20-14.80 buy window, ahead of a powerful rally that should propel Ford through key resistance at 16.00-16.50 on the way to 18.00.
While Ford proceeded to move as we anticipated, GM exhibits a more powerful near-term technical set-up. We noted last week that the current rally should run to around 33.00 prior to a pullback that will be THE buying opportunity for the remainder of 2011. That "buy window," we said, projects into the 31.60/20 prior to the anticipated powerful upleg towards 36-plus.
With today's spikedown to 31.49, followed by a strong $1.00 recovery, the optimal pattern in GM appears to be in progress so far.