$AMZN hasn't stopped amazing the market. The secular trend is still intact, however I see some technical levels that made me question if this still has enough power to reach an ATH. It is at a Double Top at the $2,000 level, Negative Momentum Divergence in the Weekly time frame and lower volume in the same time frame. I am not surprised to see how euphoric the market is about it, and I would like to share that enthusiastic approach, however, at least it has to send this stock for a ride on a bear leg to try to shake the tree and see if it can breach the ATH level.
The momentum stocks like Facebook did well with the report and it was not enough to convince the market to go higher. NFLX was rejected and it couldn't reach the double top levels, Tesla didn't convince and the market rejected an uptrend continuation, sending it to rethink the 220's levels. I am not surprised if AMZN shows good numbers and still not convince the big buyers to commit a line above it. If the momentum players start to show weakness this can send the overall market to a time out before continuing to try new all time highs.
For these reasons I am expecting a bearish leg with Amazon.
The momentum stocks like Facebook did well with the report and it was not enough to convince the market to go higher. NFLX was rejected and it couldn't reach the double top levels, Tesla didn't convince and the market rejected an uptrend continuation, sending it to rethink the 220's levels. I am not surprised if AMZN shows good numbers and still not convince the big buyers to commit a line above it. If the momentum players start to show weakness this can send the overall market to a time out before continuing to try new all time highs.
For these reasons I am expecting a bearish leg with Amazon.