GENERAL MOTORS PLUNGES TO TWO-DECADE LOW -- RESEARCH IN MOTION TUMBLES 12%
US AUTOMAKERS LOOK SICK ... One of our readers asked how the chart of General Motors looked. Rather than analyzing it, I'm just going to show it to you. The chart doesn't need any explanation. Today's 11% plunge in GM has pushed the stock to the lowest levels in two decades (Chart 1). GM is the biggest loser in the Dow. Chart 2 shows that Ford isn't doing much better. The US automakers appear to be in big trouble.
Chart 1
Chart 2
RESEARCH IN MOTION TUMBLES ... Chart 3 shows RIMM tumbling 12% today to lead the Nasdaq 100 and the entire technology sector lower. The stock has gapped below its 50-day average to hit a two-month low (on heavy volume). That suggests a further drop toward its 200-day line. Its weekly chart also has a toppy look. Chart 4 shows the 14-week RSI (top of chart) heading down to the 50 level after forming a "negative divergence". The weekly MACD lines also appear to be on the verge of rolling over after failing to hit a new high. The lower Bollinger band on Chart 4 shows where potential support is located if the 200-day average is broken.
Chart 3
Chart 4
