General Electric (GE) Up 2% Second Day in a Row

Shares of General Electric (GE) are bucking the trend of the major averages Wednesday, currently up just over 2% vs. a 0.4% loss for the S&P500. Should this divergence stick into the close, it would have positive implications heading into this time next week. The table below summarizes the last 30 times that GE closed up 2%+ and SPX finished lower on the same day…

GE Closes Up 2%+, S&P500 Closes Down
03/12/10… S&P500 +0.9% one week later
08/06/09… S&P500 +1.6% one week later
05/07/09… S&P500 -1.6% one week later
04/30/09… S&P500 +4.0% one week later
04/06/09… S&P500 +0.7% one week later
03/09/09… S&P500 +11.4% one week later
01/22/09… S&P500 +2.1% one week later
12/23/08… S&P500 +4.6% one week later
10/10/08… S&P500 +4.6% one week later
01/18/08… S&P500 +2.2% one week later
04/27/07… S&P500 +0.8% one week later
01/03/07… S&P500 -0.1% one week later
03/30/06… S&P500 +0.7% one week later
10/06/05… S&P500 -1.2% one week later
02/23/04… S&P500 +1.3% one week later
11/18/03… S&P500 +1.9% one week later
07/12/02… S&P500 -8.0% one week later
06/26/02… S&P500 -2.0% one week later
06/07/02… S&P500 -2.0% one week later
02/05/02… S&P500 +1.6%  one week later
09/21/01… S&P500 +7.8% one week later
09/05/01… S&P500 -8.8% one week later
06/14/01… S&P500 +1.4% one week later
09/27/00… S&P500 +0.5% one week later
09/06/00… S&P500 -0.5% one week later
08/09/00… S&P500 +0.5% one week later
07/10/00… S&P500 +2.4% one week later
06/23/00… S&P500 +0.9% one week later
05/31/00… S&P500 +3.6% one week later
04/24/00… S&P500 +2.7% one week later

Note that in 22 out of 30 occurrences, or 73% of the time, the S&P was higher one week later, significantly above the 52% random chance for a higher SPX five sessions later in the same time frame. The S&P ended the following week down more than 2% only twice, while it gained more than 2% ten times.

Categories : Archived Intraday Commentary, Intraday Commentary

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