Amazon Crossroads:
De”Nile” is not just a river in Egypt. The Amazon in South America is at an inflection point here. The daily chart below shows a bear flag taking shape under the 200-day SMA. We all know the Druck saying that “nothing good happens below the 200-day” but give the stock some credit for keeping in close proximity to the line. A break under the pattern and all hopes of a bullish flavor are off, but if this can break ABOVE and cause a FALSE move this name can get not only discretionary on track but possibly the overall market. This and TSLA have been big drags on the XLY, with the latter more than cut in half from its most recent 52-week highs. If one were to take a look at the AMZN MONTHLY chart March has retested a prior cup base breakout pivot of 188.41 in a pattern that started in July 2021. Bulls could step up right here, but it is a big ask as the mega caps are seeing money rotate from them. Small caps via the IWM were up 1.2% Monday to start the week, doubling the QQQ which added .6%. The IWM has dropped precipitously since late last November but is firming up near the very round 200 number.