We pay particularly close attention to AMZN because the broad averages are not likely to go much higher unless this stock is leading the charge. For once in a rare change, I’ll offer a bearish projection, albeit a minor one, to kick off the week. The downside target indicated is 831.72, but I have no great expectations that it will be reached. Instead, look for a trend reversal at the midpoint Hidden Pivot, 843.28. Night owls can attempt bottom-fishing there with a stop-loss as tight as 842.04, but if it gets mauled, look for more slippage to as low as the 831.72 target. In those circumstances we should expect the broad averages to fall as well. _______ UPDATE (Mar 6, 9:47 p.m. EST): AMZN rallied off an 841.12 low that exceeded the 843.28 support noted above by more than $2. That’s enough for us to presume that the weak rally that ensued is not likely to get very far. The opening bar selloff also generated a bearish impulse leg on the hourly chart that in theory could trip a sell signal on the next leg down. Use the hypothetical pattern shown to guide you in trading the stock, but note that if a higher point ‘c’ occurs, it will alter the Hidden Pivot levels we might use to control entry risk and profit-taking intervals.
______ UPDATE (Mar 7, 7:10 p.m.): AMZN is hanging tough, but if it slips below the 841.92 pivot without having rallied above 850.88, that will deliver a body blow to the broad averages.