Today in Chart in Focus: $MSFT.
I’ve pointed out the vertical disconnects before (see Disconnects), but as we are closing the quarter this week, tech is reaching quite the milestone:
$AAPL $AMZN $GOOGL $FB $MSFT now have a combined market cap of over $2.67 trillion exceeding the GDP of all but 4 countries.
— Sven Henrich (@NorthmanTrader) March 29, 2017
The narrow focus of this market continues to exemplified by the massive market cap accumulation in just a handful of stocks.
Here in this context a yearly chart of $MSFT. This is a linear chart that highlights how historically out of bounds this move is. Each year $MSFT reconnects with its annual 5 EMA except during the Nasdaq bubble. Is it different this time?
As it stands price is 21% above the annual 5 EMA and it stick out like a sore thumb.
And $MSFT is not alone in this set-up, most of all the heavy weight market cap stocks are.
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