Bulls flunked two tests with last week’s rally: 1) they did not reach the 1794.10 midpoint Hidden Pivot shown, which was our minimum upside objective; and 2) they died inches shy of the 1794.81 ‘external’ peak recorded on October 5. This was a weaker performance than we saw in the E-Mini S&Ps, which exceeded a corresponding midpoint resistance, although not the external peak. Because of this ‘divergence,’ we’ll need to keep close tabs on both to determine whether the bull market is likely to get second wind. My gut feeling is that the E-Mini chart’s bullishness is stronger than AMZN’s bearishness and that bulls will ultimately prevail. Be aware, however, that I have warned of a possible bull trap if the S&Ps achieve new record highs._______ UPDATE (Nov 12, 8:21 p.m. ET): Use the 1599.68 midpoint support shown in this chart as a minimum downside target, and be ready to exploit a bounce from it if you trade the stock. _______ UPDATE (Nov 14, 9:38 p.m.): Today’s $2.61 overshoot of the midpoint pivot is not visually significant, but if this ‘hidden’ support were to be exceeded decisively in the days ahead, that would put a 1415.36 target in play._______ UPDATE (Nov 15, 7:43 p.m.): If the bounce from today’s sold-out low hits 1691.84, shown in this chart as a green line, it would trigger a mechanical short there, stop 1784.25. With initial risk of $9200 per round lot, we’d want to consider ‘camouflage’ options for doing the trade.
