I’ve applied my very bullish interpretation of the S&P chart to Microsoft shares this week, producing an ambitious bull-market target at 593.79. This effectively shelves the question of whether the engineered, short-covering spike to 555.45 on July 31 marked a definitive top. It did not, as long as we give sufficient weight to the ease with which buyers surmounted the pattern’s 469.26 midpoint Hidden Pivot in June. Looking ahead, if MSFT is going to sync up with the thousand-point rally I’ve forecast for the S&Ps, it would imply the current correction has significantly further to go, possibly to the 469.29 midpoint, or even to the green line (x=407.04). A ‘mechanical’ buy at either would be an opportunity we should not pass up, so be ready.
MSFT – Microsoft (Last:520.17)
