Group Eagerly Awaits Leader:
With the bevy of earnings reactions this week perhaps none will be looked at more than AMZN on Thursday afternoon. The fifth- largest company in the world and the top holding in the top-heavy XLY at 22% will have a big say on not only the consumer space but the market overall. Keep in mind the second biggest name in the fund in TSLA was a disappointment after reporting on 7/24 completing a bearish island reversal (after the gap up on 7/2). Notice Tuesday recorded a bearish engulfing candle right at the downward sloping 21-day EMA. The MONTHLY chart below of AMZN shows an attractive long cup base and we know the bigger the space (longer the base) the greater the space upon breakout. This cup pattern commenced in mid-2021 and June broke above the 188.31 pivot and we know the best breakouts tend to work right away, so the fact that July with 2 sessions left is now below the pivot is a red flag. The daily chart shows a break BELOW a bear flag and we know from FALSE moves come fast ones in the opposite direction. Thursday afternoon will provide fireworks one way or the other.