The Wall Street ‘mafia’ charged with distributing AMZN shares to widows and pensioners before the bottom drops out have been experiencing difficulties lately. Twice in the last three sessions, they pulled their bids on the opening in order to dry up sellers; however, in both instances the resulting short-squeeze rallies failed to exceed the previous day’s high. Shorts may yet come through and panic to get ’em back over the next day or two, but unless there’s some ginned up ‘news’ to propagate this, expect the stock to take a header down to 1500 or so._______ UPDATE (Jan 15, 5:37 p.m.): Panicky bears finally came to the rescue, driving the stock $62 higher in mere hours. Now, if the 1683.70 midpoint resistance shown in this chart is easily exceeded, look for a continuation of the rally to at least D=1772.24. As always, a stall precisely at p would confirm the pattern and its target._______ UPDATE (Jan 16, 8:16 p.m.): The stock vaulted past the midpoint resistance on the opening bar, raising the odds of a further rally to 1775.75 ( slightly higher than the target given above). AMZN would trip a ‘mechanical’ buy signal on a pullback to 1640.30. Here’s a new chart for your further guidance.______ UPDATE (Jan 22, 10:53 p.m.): The 1775.75 rally target remains valid in theory, but today’s heavy selloff has left it in doubt. The strong reversal has brought AMZN down to the 1640.30 price where a mechanical buy was signaled, but I explicitly warned subscribers off this trade in the chat room. _______ UPDATE (Jan 23, 5:20 p.m.): An inside day changed nothing in my outlook. However, a print below 1595.15 would stop-out the mechanical buy and turn the lesser charts more bearish.
