When Goldman Sachs (GS) puts Microsoft (MSFT) on its Conviction Buy List, not only is it positive for the name, but perhaps it is very positive for big-cap technology, too, perhaps the kind of technology names imbedded in the NDX. Maybe GS is impressed with BING, which gives MSFT a new product that can and will effectively compete with Google (GOOG).

Should we not extrapolate the impact of the Conviction Buy List to the NDX? I don’t know, but as long as the PowerShares QQQ Trust (Nasdaq: QQQQ) remains above this week’s pullback pivot low at 35.24, I will respect the integrity of the larger upleg by remaining long in our model portfolio. However, if this week’s pivot low is violated, I will reverse into a short position, regardless of MSFT’s inclusion in the Conviction Buy List.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.