GE Challenges Blue Chips

Difficult to believe that the DJIA could be up 80 points, with 23 of the 30 components trading higher, and GE acting AND LOOKING so miserable! As we speak, the price structure is pressing towards a full-fledged retest of its Oct. 2005 low at 32.67, which MUST contain the weakness to avert a plunge into the 30-29 next target zone. Can the Blue Chips rally without the bluest of Blue Chips, GE? Alternatively, is this ugly picture of GE a window to impending weakness in the DJIA? I don't really know. But I do know that the enclosed chart is fraught with technical challenges, which do NOT bode well for the outlook for the U.S. economy. MJP 01/24/06 2:30 PM ET 32.99

For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his Macro Trading Charts. Or try his QQQ Trading Charts or his E-mini S&P 500 Trading Diary.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!