For the most part, General Electric (GE) and the S&P 500 Depository Receipts (SPY) have exhibited very similar patterns during the past year or so. However, upon a closer look, we notice that GE actually peaks slightly before the peak in the SPY.

After the March rally, GE peaked on May 8, while the SPY peaked on June 11. After the July pivot low, GE peaked on Aug 7, while the SPY peaked on Aug 25. And last Thursday, September 17, both GE and SPY hit new post-March recovery highs. If GE now begins to diverge negatively with a still-buoyant SPY, then perhaps we should expect the SPY to roll over in a significant way at the end of the month? Let’s watch this relationship closely in the days ahead.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.