AMAZON STOCK NEEDS TO CAPITULATE FURTHER BEFORE THIS SELLING IS DONE

Amazon, Inc. AMZN shares have been leading the market to the downside before and during the current broad market sell-off. Even an impending earnings release is clearly not emboldening the Amazonians out there this time around. Perhaps last quarter's curveball from Bezos and friends was enough to cause even the most fervent believers to lose faith. On the other hand, would anybody be surprised to see Bezos flip the mythological profits switch and crush the bears' hopes? At this point, anything is possible with this group. Technical update… Amazon has been a weight around the neck of the NASDAQ and S&P for months now – ever since the debacle surrounding the last earnings report. Technicians note that under the best case scenario, the stock appears to have room to fall still. Even if the current decline is wave “c” of an “abc” short-term downside correction, the $295.60 level would have to be touched at a minimum. If you used the extreme intraday levels when measuring out that same “abc” formation, the downside target would become $286.12 – as shown on the chart with the green lines. If we really are in a crash type scenario for the broader market, $286.12 will be violated on the downside on a closing basis and the next two targets would become $263.10 and $248.88 (both of which are Fibonacci projections). Overall… Amazon may be worth taking a shot on the long side down at either $295.60 or $286.12. Those brave souls venturing into the water at those levels MUST honor stops on closes below $286.12, though. Better to live to fight another day by taking the quick loss should that level be violated.