We treat AMZN as the key stock market bellwether for the entire investment world for good reason. It can drag U.S. stocks higher on any given day and keep them buoyant when interest in the markets is lackluster. On Wednesday the stock opened with the usual gap higher and then pulled back in bull-trap fashion. But after retracing the entire gain over the next 90 minutes, buyers found their footing and moved the stock steadily higher — first to within an inch of the 977.76 rally target we were using to stay on the right side of the trend; and then, by day’s end, to new record heights. You can use the minor ABC pattern shown to get a precise handle on this move, but don’t expect DaBoyz to gift us with a ‘mechanical’ buying opportunity on a pullback to p2 or p. (Notice nevertheless that today’s midsession pullback to the green line provided a perfect set-up for a ‘mechanical’ entry and a belated chance to get aboard at the low of a $10 rally.) _______ UPDATE (May 26, 12:51 a.m. ET): With Thursday’s manic thrust, the 1000 barrier has become more important than any Hidden Pivot target I could offer you. Ahead of the three-day weekend, be wary of a bull-trap poke above it in the early going.
