Amazon Rocks Into Gap Fill
Even in a weak market, Amazon.com, Inc. (NASDAQ:AMZN) is higher. However, it is hitting a master level known as gap fill. This gap fill is extremely significant because it is the level Amazon was trading at prior to releasing ugly earnings. On January 27th, 2011, Amazon closed the trading day at $184.45. After the close, they reported earnings that disappointed Wall Street and analysts across the board. The next day, AMZN hit a low of $166.90. Since then, the stock has rebounded day after day. Today, it achieved its former price, prior to earnings. This is a major resistance area and should be watched. It would not be shocking to see a solid drop off of this level. Should this level be eclipsed, the next pivot resistance point would be the all time high of $191.60.
The markets are currently lower on the day, dropping on the back of a spike in the U.S. Dollar. A nice bear flag has formed on the SPDR S&P 500 ETF (NYSE:SPY) on an intra day basis. If volume holds up, this could signal a move lower this afternoon.