I’d made AMZN the focus of my analysis yesterday, stipulating that as long as it continues to move higher, so will the stock market. But while AMZN spent the day cavorting with a 1699.04 bull market target I’d deemed crucial, the Dow bolted higher, leaving no doubt that the broad averages are headed higher as well. To be more precise, the Dow is bound for the 25803 target shown, implying a further rally of 657 points is coming. I’d say this is 90% probable, given the way buyers blew past the 25,025 midpoint Hidden Pivot shown in the chart as a red line. A further implication is that if the Indoos first pull back to 24,636 (i.e., the green line) without having exceeded 25,300, it would create a great opportunity to get long there via a ‘mechanical’ buy, stop 24,246. There is one more important thing to be inferred from the chart: a move to the 25803 target would slightly exceed the very important peak at 25,800 recorded on February 27, reaffirming the bullish energy of the daily chart. If this occurs, we will continue to go with the flow, but with diligent attention to such small details as could reveal a bull trap. _______ UPDATE (June 10, 10:51 p.m. EDT): Wall Street is not going to like the news emanating from the G7 summit, so be prepared for weakness as the week begins. However, traders please take note: If the Dow should fall to the green line at 24,636, it would trip a very compelling ‘mechanical’ buy signal.
