We settled on MSFT, the second most valuable company in the world, as the mine canary that would signal the end of the bull market. So far, it is saying we should stick with the uptrend, albeit with one foot on the fire escape. The chart shows a logical path to the 547.12 rally target identified here earlier. It is not a done deal, since buyers did not exactly trash the midpoint resistance (p=519.75) on first contact, nor have they broken free of its gravitational pull. Even so, there is almost no chance that p2=533.43 will not be achieved. Any pullback to the green line (x=506.06) in the meantime should be regarded as an excellent ‘mechanical’ buying opportunity. ______ UPDATE (Oct 28, 2:59 p.m. EDT): Microsoft’s decision to dive into fee-based AI has tacked on yet more hundreds of billions of gaseous ‘wealth-effect’ value to its shares. Today’s volumeless stab through the green line (x=543.00) has shortened the odds of a further run-up to p=592.94. I have my doubts the stock will achieve D=692.83, so we should be ready to short the bejeezus out of it at p, provided we’ve made plenty of dough on the way up. Here’s the chart.
MSFT – Microsoft (Last:544.87)
