The stock fell $6 after topping eleven cents shy of the 847.32 target I’d spotlighted here earlier. (Note: The target was revised downward slightly from an original one at 847.44.) There remains a rally target at 871.11 outstanding, but because we like to take our price objectives one at a time, we should trade with a bearish bias for the moment. There were no reports in the chat room of anyone having gotten long on the way up, or short from the targeted top, so I haven’t established a tracking position, at least not yet. Since Amazon is our key bellwether for the stock market as a whole, we should monitor the downtrend closely. If AMZN continues to fall, that will make it extremely difficult for the broad averages, especially the Nasdaq, to climb higher._______ UPDATE (Oct 11, 10:25 a.m. ET): The stock has indeed continued to fall — this morning to a so-far low at 834.26 that lies $13 below the very precisely foreseen top achieved three days ago at 847.21. Of course, this has bearish implications for the stock market as a whole, the moreso because this morning’s low has exceeded a clear Hidden Pivot support at 835.44 that should have evinced a bounce but did not. This implies that AMZN is likely to fall even farther, presumably at least to structural support near 830 created by a key low recorded there a week ago.______ UPDATE (7:30 p.m.): Hard selling has extended AMZN’s plunge to a so-far low of 828.35, a $19 fall from the 847.21 target I’d noted. _______ UPDATE (Oct 16, 5:06 p.m.): AMZN has now fallen $26 since topping 11 cents from the rally target I’d flagged here weeks ago. Now, if the stock cannot hold above a minor Hidden Pivot midpoint support at 811.91, it will fall a further $10, to exactly 811.91. (with a shot at a bounce, precisely, from p2=817.19). Here are the coordinates to reproduce those HP levels on the hourly chart: a=845.20 (10/10); b=821.21 (10/13); and c=835.18. If this scenario holds, as I expect, the broad averages are headed lower as well.________ UPDATE (Oct 17, 9:08 p.m.): The stock fell a further 11.32 today, bottoming just seven cents from an 811.75 target that corrects the erroneous one at 811.91 noted here previously. Given the stock’s bellwether status, it must hold above the Hidden Pivot if the broad averages are about to turn around. _______ UPDATE (Oct 23): The stock went on to breach the 811.91 support by a decisive $8, and that is a likely reason why the stock market went nowhere last week. Bulls regained their footing on a criminally engineered shakedown to 803.10 on Thursday, but they’ll need to push the stock above 823 within the next day or two to retain what amounts to a small edge.
