We’re using a 1018.73 rally target for AMZN, the only stock we need to watch closely if we want to get the stock market right. You can bet that as long as the retail giant’s shares are headed higher, any predictions about a crash on Wall Street will be premature at best and distracting at worst. Notice that there is yet one more rally target to use if this one gets obliterated: 1083.31. A move to that Hidden Pivot would be the culmination of a bull cycle that has taken 16 months so far to unfold. If the AB and CD legs of the rally prove to be symmetrical in time, the top would be reached sometime in the second week of July. That’s what I’ll be looking for, although I’ll also be watching closely for either a potentially significant turndown from somewhere south of the target, or a spike that hits it ahead of my July estimate. But it won’t be over until the Fat Lady sings — and this stock, as far as I’m concerned, is a 350-pound diva. _______ UPDATE (June 6, 6:40 p.m. EDT): AMZN nosedived after getting within about $2 of the 1018.73 target in the early going. I have turned cautious, especially since the selloff generated a bearish impulse leg on the hourly chart. The stock would be a fetching ‘mechanical’ buy nonetheless if it falls to 992.53, a conventional, green-line entry point. It is already a ‘mechanical’ buy in theory at p=1002.90, stop 995.98, but I’d suggest substituting a ‘camouflage’ entry to cut the initial risk by as much as 90%.
