On 04/29/21 Amazon.com Inc (AMZN) released its first quarter earnings that crushed estimates. Revenue was up 44%, profits were up an incredible 224%!
The next day 04/30/21 AMZN rallied to 3554.00 marginally above its all-time high made 09/02/20. AMZN finished the 04/30/21 trading session down 3.89, at the close 05/10/21 AMZN was down 10% from the 04/30/21 high.
The daily AMZN chart courtesy of Trading View illustrates the stocks momentum.
The bearish divergences for AMZN are similar to current the S&P 500 (SPX) situation. On 05/10/21 AMZN Stochastic has reached the oversold zone. RSI has yet to reach the oversold zone and MACD lines have yet to cross below the zero level. AMZN looks like it could reach the double bottom at 2871.00 and 2881.00.
AMZN is one of the most important US stocks and is frequently a leader in bull markets. AMZN has been lagging the SPX since 09/02/20, its had a fabulous earnings report and the stock has fallen 10%!
The tremendous underperformance of AMZN is another signal the US stock market could be making an important top.