While I was disappointed that General Electric (GE) failed twice to follow through to the upside from above its December resistance line in the vicinity of 15.90 and instead nosedived to 15.66 earlier this morning, my work argues that the weakness should be considered a correction in the aftermath of yesterday’s upmove from 15.55 to 15.94.

As long as that proves to be the case – and 15.55 contains any additional weakness – then GE is doing the consolidation work required ahead of the next upleg, which should propel prices above 15.94 on the way to revisiting 16.50. Bottom line: disappointment yes, technical damage no.

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