Eye on Microsoft - Market Analysis for Feb 27th, 2009

Some observations about this morning trading so far: Let's notice that technology names like PALM, RIMM, APPL, INTC, DELL are green, and act very well despite otherwise dismal action in the major averages. This is significant for ETF traders of the Q's and SMH. Moreover, Microsoft (Nasdaq: MSFT) made new 11 year lows this AM at 16.10, but has recovered to a few pennies of unchanged (16.42) within a pattern that my work argues ended or is ending the most recent downleg from the 2/06 high at 19.93, and perhaps ending a much larger bear pattern off of its Nov. 2007 high at 37.49. If that proves to be the case, then we need to keep an eye on MSFT for an upside reversal very soon (a close above 16.42 for starters, and above 17.10 thereafter) as a sign that the most beleaguered of the BIG CAP names is exhausted on the downside- and ripe to "lead" the market into a recovery rally period.