General Electric Hits Potential Support At Bottom Of Base
You’ve heard me say this before, but it’s worth repeating. Often, if you want get an idea of what’s in store for a major stock index, it
helps to keep your eyes glued to the major bellwether stocks that are a part of
the index.Â
So when I took a look at the Dow Industrials
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tell me as much as a look at the chart of General Electric
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As you can see, GE is hitting the bottom of a 12-week base and its 50% retracement, as calculated off its Feb. 18, 2000 low and its April
26, 2000 high. This is an interesting setup when you consider that GE has found
support from the bottom of this base four previous times. Yes, it’s possible for
recent history to repeat itself and certainly a bounce from this level will help
the Dow. The one caveat, however, is that I have observed that by the time a
pattern becomes this obvious, it disintegrates. This happened recently with a
similar pattern in Electronic Data Systems
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See you tomorrow,
Eddie