It's Now the Offseason for Mister Softee

Despite how pronounced the Alphabet (GOOGL) weakness is today, as we zoom towards the big FOMC at 2pm EST, I actually find the Microsoft (MSFT, below on the daily chart) reversal to be of even more significance. 

First and foremost, headed into earnings last evening MSFT was the largest publicly-traded firm at over $3 trillion in market cap, with a forward PE of a rich 31 at that. 

The headlines after the report then screamed that, "Microsoft beats Q2 earnings on AI, cloud strength," and the like.

Initially, "Mister Softee" was trading flat or even higher, quite the impressive reaction considering the AMD GOOGL selling and the sheer size of MSFT. 

However, as you can see below, Microsoft has sharply faded its $415 highs printed not long after the opening bell this morning. 

What makes this move so important is that you are talking about the largest firm on The Street flopping around like a much smaller stock, which is a characteristic we have seen quite a bit in this Fed-driven era of liquidity galore. Naturally, this is all pending what happens in the final two hours of today's session with the FOMC and Powell's presser. 

But as it stands now this is an enormous relative move for a firm this size and significance. Moves like this for a firm of this size at new highs typically denote an underlying indecision which is not bullish.