Nope, this is likely to be a spike high.
The break in the indexes almost guarantees that. Keep in mind that all the indexes closed lower than last month. That means they finally ran into a brick wall from the 8 month super rally.
Lots of profit taking is going to come in next week and there is no longer "any" report that can help the indexes rally back. If the market dropped with blow out earnings in AAPL, JPM, AMZN, GS, and others, plus a great GDP report, what could possibly come out that would cause people to buy now? The answer is nothing.
Be prepared to see at least a strong correction, but the possibilities do exist that this move was just a major short-covering rally in the indexes and that the downtrend will begin again.
That is not a question that will be able to be answered right away (will likely take a few weeks and/or months to decide, but that this is the top to the rally for at least 2-3 months is highly likely.
AMZN, should have the same situation, especially since $125 is way above what any fundamentals call for.
The first drop down on Monday should be down to 115.96 and that area will be the next area of importance. Then the gap down around $110, and then $100. I do not expect AMZN to get back to $125 and it might even have trouble getting back up to $120, even though it is only $1.20 away.
I strongly believe in double tops and double bottoms - first time the top (or bottom) is established and second time - if the top (resistance) or bottom (support) helds - then the stock turns around and moves in opposite direction. From that point of view, do you think AMZN will try 125 again before it decisively turns into a down trend?
you mean the short pigs who got crushed from 93 to 127 when most LT holders have owned ths stock from way below 93??? oh now you're scaring me!! What an Einstien!! Good day. you shorts crack me up!! thank's for the entertainment for the day.
Technicals are pointing down.
You have a new all time high of 125.
To expect a stock to just keep going nothing up.. well thats just silly. The chart shows some support levels at about 118 and 116.9
Beyond those levels its no support til 95.
Trading volume fell off at 11:30 Wednesday after the sell off.To its credit Amazon has held fairly well through a couple days of market weakness. But When the herd runs for the exits, if you stand still you're going to get trampled.
Then again if you think Amazon was a buy at 120 it must be a STEAL at 118.. better stock up
even if it went to a 100, way would that make someone who owns AMZN LT shudder. Being that it was a short covering rally to you, most share holders would still have owned it way under 100 and not lose sleep. now argue that point.
You are looking at it in a laughably amateurish manner. Any stock can for a short time run against the tide. That does not mean it has technical strength. If it were as easy to predict technicals as you claim any moron could tell you with 95% accuracy where the stock will be in a week. This stock popped huge on short covering, not real buying, that's reality. You may choose to ignore it, when it's back under $100, which by the way it will be, we'll talk, :-)
what if it turns into an Enron or Worldcom overnight? Are you protected against that? What if tomorrow a report comes out that says Amazon Security Glitch gives one million credit card numbers to the mob? What then? Buy and forget until 2050? What if the technology changes and people wind up buying stuff through AAPL's tablet and istore instead of AMZN? Not saying any of that is likely, but you need to prepare for it, unless you're 32 and can handle going back to zero.