I featured Microsoft at the top of last week’s list because it looked primed to test my theory that the bull market is over. The stock did in fact go against the bearish grain by triggering a ‘mechanical’ buy at the green line (x=506.00). The subsequent rally has yet to develop legs, however, and would need to pop decisively above p=519.75 to offer a profit-taking opportunity as well as evidence MSFT is capable of reaching the 547.12 target. If that is what the world’s second-most-valuable company’s shares are about to do, it means the broad averages are going to rally strongly as well. My gut feeling is that this bounce will not be memorable, let alone record-breaking, but I’m keeping an open mind.
MSFT – Microsoft (Last:513.51)
