Left hand the daily chart of GE which has still some downside ahead and very likely retest the 2003 low of 21.30 soon. Yesterday's general upside momentum was a classic inside day driven by window dressing since most funds long only and Hedge funds will have to fight with severe capital outflow and need to defend their turf. The overall picture looks troubling, since even with a bailout package approved with the new changes (tax provisions), the price will come hefty for the taxpayer and government ($2-3 tril.) once recognized will have a negative impact on the markets. This is reflected in the price action of GE and the momentum. Three months ago, GE had a negative crossover of the 50 week through the 200 week MA. The price action suggests a diamond formation while producing the current low, forming a mirrored triangle part which should reach the 2003 low of 21.30 (very likely) and can even make a low of 20.50. In any case, we need to go below the 22 support to complete the current down leg.Immelt another overpaid executıve running stock buybacks at higher prices to sell secondaries at the market lows - he should quit and Welch should stop playing the hero that is his legacy although Immelt had quite some time to adjust. What's the cost to the stockholder? Let's assume the last programs bought $15 bil. worth at $30 average price and he sells now $15 bil. at $23, that alone produces a loss of $3.5 bil.
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