This Year, is Different

As is typical for this time of year, the pundits are out talking about the Santa Claus rally.

We’re literally hours away (Sunday futures), from finding out if there’s even a chance of that happening.

One sector that’s not looking too well, is the consumer and proxy, Amazon.

Amazon AMZN, Daily

As can been seen, a wedge is typically a terminating pattern, signaling the end (or near end) of the move.

The important part, while there are small wedge formations, we’re also in a much larger wedge that’s broken to the downside.

Let’s zoom-in, and look at the far-right side.

The earnings blow-off was not only a wedge, but on a longer timeframe, a Wyckoff up-thrust as well.

Here’s the link to the Amazon press release.

There’s plenty of discussion about A.I. saving the day.

Ed Dowd has presented in his interviews, from an overall economic standpoint, the A.I. ‘excuse’ for efficiency improvements, layoffs, is just a ruse to cover the fact, demand is collapsing.

With that said, AMZN has broken the downside of its wedge and has potentially completed a test of that break.

With futures to open soon, we might find out (today) if downside action is to continue (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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