These four big-name stocks have already begun downtrends, even though the S&P 500, at the moment, still remains in an uptrend. If the S&P 500 SPDR (ARCA:SPY) drops significantly below $177.25 a larger correction is likely underway, which would be confirmed by a lower-high to follow. With the major market index approaching support, these four stocks have already broken well below, indicating profit taking and/or shorting opportunities are present.

General Electric (NYSE:GE) finished 2013 with a high of $28.09, but has seen a sharp sell-off since, closing at $24.95 on January 24. There is support in the $24 area, which is also is the vicinity of a year-and-a-half long trendline. While the price may bounce off this area, that bounce is unlikely to result in a re-test of the highs any time soon. The drop is of similar magnitude to the one seen in October 2013--it took four months for the stock to reclaim that pre-drop high. This drop is much sharper, showing greater selling pressure. Therefore, short-term rallies in the stock should be viewed as selling or shorting opportunities.

Citigroup (NYSE:C) tried to break through the $53.50 region throughout the latter part of 2013. In 2014 it managed to do it, creating a high at $55.28, but the breakout ended up being false. The price has now fallen below the December lows at $50.27, broken a short-term trend line and is heading toward the next support level near $48. If that area holds the price could continue to range in between $47.60 and $55.28, yet given the false upside breakout, it is more likely the price will eventually fall through support. While over the short-term it is unlikely Citigroup will be able to create a new high, a higher-low followed by a move above the high indicates buying pressure is once again building.

Ford (NYSE:F) has already seen two waves lower, since the October high at $18.02, and now appears to starting a third. Based on the current downtrend the price is expected move below the support area just above $15. The next important area of likely support isn't until $13.50. If the price does manage to hold above $15, and then rally back above $17, it indicates a range may developing or the price could re-test the October high. In either case, short-term momentum is down, and therefore trading the short side is favorable to taking longs under these conditions.

General Motors (NYSE:GM) broke through a short-term and longer-term trendline on recent selling--not a sell signal and of itself--but has also been making lower-lows indicating a downtrend. The drop off the $41.85 December high is the most aggressive and extensive in the last year, therefore lower prices are likely before a new high is seen. There is a broad support area between $36 and $34 which may support the price, causing a bounce in the short-term, but overall the price will probably move below this area. The next key support region is $28 to $26.

The Bottom Line

While the S&P 500 finished January 24 just above short-term support, indicating the uptrend is still tact (for the moment), these four stocks have all broken short-term support indicating their price is likely to continue sliding. Rallies should be viewed as selling or shorting opportunities. Until the price once again starts making higher lows or higher highs, the downtrend remains in effect. At minimum, given the strong drops, recent highs in these stocks aren't likely to be seen again for some time, indicating there are better stocks to be long in for those seeking buying opportunities.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.