MSFT: Head, shoulders, knees and toes

Microsoft has painted a head & shoulders formation, and is on track to confirm a neckline break on the daily and weekly timeframes. Expect a continuation of the downtrend on this neckline break, as well as further index weakness given MSFT's tremendous weight in the indices.

Notes:

• Confirmation still required on neckline break, a wick below is insufficient.
  
• Weekly closure above the neckline will invalidate the pattern.