Nasdaq trades near lows again. GE getting hammered.
The stocks have moved back to the downside with the Nasdaq leading the downside momentum.
The Nasdaq moved back down to test the lows for the day (actually made a new low at 7743.637), but is seeing a little bounce. The lows from August 7 at 0.7702 and the August 5 low at 7662.90 are targets on more weakness.
Looking at the daily chart below, on more weakness and a move below the August lows, the 200 day MA at 7572.20 would be a target. Below that the 38.2% at 7518.54 would be eyed. That is also near the 10% correction line from the recent high (end of July). Good him support. Of course Pres. Trump will do all he can to keep the stock market supported.
Things could be worse. Shares of GE are getting hammered on the back of a whistle blowing accusation of accounting irregularities. According to Harry Markopolos (who blew the whistle on Bernie Madoff), he says GE's insurance unit would need an $18.5 billion boost to its reserves. He also told the WSJ, that other accounting issues, including in its oil and gas business, would amount to around $38 billion.
The price of GE shares are down 9.4% to $8.174. Technically, the gap lower leaves an island top (give or take a few cents) on the break of $9.00. GE shares bottomed in December at $6.401.
