Mister Softee “Firming” Up:
That oxymoron could be a good omen for the software group that has flourished without the third-largest name on the planet. If this name can join the fray it could give the space some added fuel to the fire. Notice below on the ratio chart compared to the IGV it has been in a slow and steady downtrend for at least 6 months. There does seem to be a new-found affinity for mega caps with the META breakout that we spoke of this week, and AAPL now distancing itself from a 237 WEEKLY bull flag trigger that carries a measured move to 311. The MONTHLY MSFT chart sports a bull flag, but it feels like its dominant years may be in the rearview mirror. I would love to be proved wrong, but look at the very clean uptrend between 2016-22 that never recorded so much as a 3-month losing streak (and fell back-to-back months on just 3 occasions). The streak did end with consecutive doji candles in November-December 2021. On the MONTHLY RSI notice it is just a shadow of its former self which traded above 80 for a good chunk of 2017-21 and since its velocity of PRICE has slowed. That being said software peers would welcome MSFT with open arms in a stab to reclaim the good old glory days.