General Electric (GE) has exploded to the upside this morning after being upgraded by a couple of high profile research departments on Wall Street. From my perspective, this morning’s up-gap and upside continuation confirms the low of the 17-week cycle and the start of a new cycle, the first half of which should propel the stock higher off of this week’s low at 14.15.

The initial optimal target is 16.20/40. My optimal pullback buy zones are 14.90 and 14.60.

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