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AMZN – Amazon (Last:1672.05)

AMZN ended the week looking feisty, but not quite feisty enough to command the broad averages higher when the new week begins. In assessing the stock’s strength over the next couple of days, we’ll skip the subtleties and stipulate, simply, that it must surpass the 1718.93 ‘external’ peak labeled in the chart to shift into high gear. The 1775.75 rally target given here previously will still obtain, but we should put it on the back burner until AMZN re-energizes itself with an  impulsive thrust above the peak. Keep in mind that the stock is still on a ‘mechanical’ buy signal — one we passed up because the dollar risk and the very steep pitch of the last correction were just too scary. Yes, we love such set-ups because they work best when price movement is violent and punitive. In this case, however, ‘instincts’ have overruled the usual protocols simply because we are very probably in a bear market.