Friday, April 11, 2008

GE Startles the Market; 50 sma

It's not a good sign when one of the world's leading companies misses earnings like GE did this morning. First of all, the stock carries a ton of weight in the S&P which leads to a nasty breakdown in the broad market. Also, GE is seen as a sort of bellweather for the economy since it is such a diversified and large company.

GE's really getting punished right now and the major averages are already down over a percentage point. This is not the sort of catalyst that will help us break out from this range! Now instead, the S&P and Nazz are hovering above their 50 smas threatening to break down. At this point, the market's pretty dangerous. Thus, it's not a good idea to be caught too long.

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