A look at the pattern developing in Amazon (AMZN), which is one of my indicators for the QQQ and the QID. My near- and intermediate-term pattern and momentum work is warning me that AMZN is in the midst of a significant correction that projects into the 210-205 area prior to completion.

Today's reversal from 234.50 represented the end of an intervening rally that separates two corrective declines. As long as 234.50 is not hurdled, rallies in AMZN should prove to be headfakes prior to the completion of its correction from the Sep 20 high at 244.30 to the next optimal target of 210-205.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.