Amazon.com, Inc. (NASDAQ:AMZN) down sharply
Investors dumped technology and other growth stock winners Wednesday in favor of defensive and value names, a trend that has accelerated as interest rates rise.
Tech stocks fell 4.8 percent in the worst day for the S&P sector since Aug. 18, 2011. The tech-heavy Nasdaq led the declines with a 4.1 percent loss, and the Dow ended down 831 points or 3.1 percent. The S&P 500 was off 3.3 percent, but the small-cap Russell 2000, however, was down slightly less at 2.8 percent.
The sell-off has definitely been targeting big-cap growth names, like “FANG” companies Facebook, Netflix, Amazon and Google’s parent Alphabet, all down sharply. In tech, semiconductors were down 3.4 percent, and have now fallen more than 7 percent since the start of October. Names tied to global growth, like Caterpillar, have also been slammed.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,845.36.
The projected lower bound is: 1,664.25.
The projected closing price is: 1,754.81.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 13.6659. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 27.22. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 25 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -186.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed down -115.070 at 1,755.250. Volume was 136% above average (neutral) and Bollinger Bands were 47% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,923.35 1,924.47 1,636.27
Volatility: 39 30 32
Volume: 5,977,091 4,847,555 5,002,341
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
AMAZON COM is currently 7.3% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AMZN.O and have had this outlook for the last 6 periods. Our momentum oscillator is currently indicating that AMZN.O is currently in an oversold condition.