Your observation is compelling. It is my intuition, however, that the recent $60 peak on Dec 31, '97 is the right shoulder position of the head and shoulder formation (head being AMZN all time high of about $65 at the end of October. Also you'll notice more volume on the down curves than up during the recent channel formation.... Today and perhaps tomorrow would give us a better idea on the development of the future AMZN graph. And guess what? S&P futures down more than 7 points at 6:30 am central. Every index in the world down anywhere from 1/2 to 5% today. DOW dropped 100 pts yesterday but NASDAQ held up pretty well...I think it will be a nasty day in NASDAQ today. I see a losing day for AMZN.
Ron- "spreads" are the difference between somes base rate (like LIBOR, PRIME,or T-Bonds)which borrowers must pay based upon the term(lenght of the loan) and for risk. The AMZN loan is a short term bank loan which are typically based on LIBOR.A spread of 3.5% is HIGH and reflects the financial risk of AMZN as a startup business with no track record of profits.As I mentioned earlier,BKS borrows at a much lower spread of .65 reflecting their financial strength relative to AMZN. Junk bonds are sold LONG TERM(ie, 10 years.)Right now, GOOD junk sells for about 3-4 over US Treasuries, or about 8.5-9% for 10 years. I doubt if AMZN could float a junk bond due to their short track record and lack of profitability. If the COULD, your'e right it would probably bve in the 12% range.