The so-far 14% correction from the record-high 468.35 achieved on July 5 is about to test the support of a midpoint Hidden Pivot at 400.23 (see inset). The ‘reverse’ pattern from which that number is derived is a very good one for proprietary reasons that I won’t go into, but suffice it to say, it will give us a high-confidence “read” on trend strength, as well as precise coordinates for trading with or against the trend at opportune times. For now, please note that a decisive breach of p=400.23 will send this stock down to at least 332.11. That would represent a nearly 30% correction from the top, with no assurance that the worst was over. Let me remind you that I treat Microsoft as my #1 bellwether because the company’s subscription revenue model for the Windows operating system and Office suite make the firm’s vast revenues as bomb-proof in hard times as could be conceived.
MSFT – Microsoft (Last:408.49)
