General Weakness

Yesterday in the blog I noted that Wednesday's small rally allowed the S&P 500 (SPX) to establish its highest close for this up move. Also, a quick glance at the chart showed that for the seventh day in a row, the SPX had made a higher lower versus the previous day. In other words, the market seems to be catching a bid at higher and higher levels. Today I noted that in conjunction with the very recent of pattern of higher lows on the SPX there was a mirror image pattern on General Electric (GE)...which is a stock I recently discussed here [subscription required]...

Put another way, while the overall market has been seeing buyers come in at incrementally higher levels over the last few sessions, GE has seen the exact opposite happen. It seems to me that given the size of GE, and its stature as one of the "bluest of the blue-chips" that these two opposing trends can't persist for all-too long...