chart courtesy of www.stockcharts.com
These last two weeks saw Microsoft with about a 25% move to the upside. After testing support around $40 this stock rebounded strongly to over $49. It now is testing resistance at just under $50. If it moves beyond this resistance point we will see a new upward sloping trend. Based upon the chart technicals it appears this stock has room to move.
This keeps with the fundamental idea that the US stock market is the place where the large money wants to go. Many of the Dow Stocks and large cap stocks are paying dividends well above 2% and are more stable than most banks. Don't listen to the doomsayers who say this market is overvalued. For now the large money has nowhere else to go.
Disclaimer: The above is for information purposes only. Any decision to buy, sell, or hold a specific investment should be reviewed with your personal investment advisor.
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