Published on 01/24/2006

Mike Paulenoff asks if the Blue Chips can rally without the bluest of Blue Chips, GE?

Daily Minute with Mike Paulenoff for January 24

Difficult to believe that the Dow Jones 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 October 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

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.