In my last update I covered two stocks that were helping the Dow. Now lets take a look at two stocks that are hurting the Dow.
Citigroup Daily Chart
After gaining $15 since March, Citigoup stalled around $54. This last failure has kept the longstanding downtrend intact, and has led to 6 straight losing days. The $7 drop has put the stock below both moving averages, and below support at $48. $46.50, the 50% retracement level and top of the double bottom, should be the next support level, but at the rate Citigroup is falling, support may be a relative term.
General Electric Daily Chart
GE may bring good things to life, but their not bringing any returns to their investors in the near future. When the up trend cracked in late June, it was the beginning of the end. The stock made one last gasp to sustain its up trend, but that was quickly thwarted. $47 should have offered some type of support, but the stock picked up momentum like a boulder rolling down a hill and blew through that level. $45 didn't fare any better, so now it's time to see what $43 can do. This level has the combined effort of the March basing pattern, 61.8% retracement level, and small gap that formed on 4/10/01.
So there you have. If GE and Citigroup can find a support level, the Dow might be able to stop its slide. To move higher GM and Wal-Mart are going to have to find a way to crack support. There are 26 other components that could move the Dow, but these four could give us some clues.