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The WisdomTree U.S. SmallCap Earnings Fund ETF (EES) shares have crossed below their 200-day moving average of $52.04, trading as low as $52.03 per share, a 1.2% drop. The one-year performance of EES shares is shown in the chart, with a 52-week range of $41.9182 to $59.3442 per share.

Microsoft Corporation (MSFT) has been performing exceptionally well, maintaining a bullish trend above its 20-day moving average. According to MarketPulse [1], since 7 April 2025, Microsoft has staged a significant rally, rising by 43.48% from its major low following the ex-post US Liberation Day tariffs announcement. The company is set to report its Q2 earnings after the US session closes on Wednesday, 30 July. Analysts expect earnings per share (EPS) of $3.38, an increase from $2.95 in the same quarter last year.

The medium-term trend for Microsoft, as of 30 July 2025, is bullish, with key pivotal support at $486.00 and resistances at $536.10/539.55 and $566.90. The price actions have evolved within a medium-term ascending channel, trading above the 50-day moving average since 25 April 2025, indicating an ongoing uptrend. The ratio chart of Microsoft versus the S&P 500 also shows a higher trendline, highlighting potential relative strength outperformance against the S&P 500.

However, a breakdown below $486.00 could damage the medium-term uptrend, initiating a corrective decline sequence to expose the next medium-term supports at $456.20 and $437.00. This potential downturn could be a significant factor for investors to consider.

Microsoft's strong performance has also influenced the Roundhill Magnificent Seven ETF (MAGS), which includes Microsoft as one of its major holdings. The ETF, built to balance the largest U.S. tech giants, represents a condensed bet on these companies. The success of Microsoft and other tech giants in the ETF could drive further investment into the fund, particularly given the focus on AI and automation software [2].

In summary, Microsoft's bullish trend and upcoming Q2 earnings report are key events for investors to monitor. The company's strong performance and potential for earnings growth make it an attractive investment, but the risk of a corrective decline should also be considered.

References:
[1] https://www.marketpulse.com/markets/microsoft-msft-technical-bullish-trend-remains-intact-above-20-day-moving-average/
[2] https://www.benzinga.com/etfs/specialty-etfs/25/07/46731965/metas-ai-firepower-could-ignite-magnificent-seven-etfs