Amazon (NASDAQ:AMZN) has had a stellar run since it's March 2009 lows and really kicked it into high gear last October leaping about 20% in one day and continuing it's run over $150 a share at it's peak in April. This stock has maintained it's status as a market leader, unfortunately it has been leading the market down.Amazon (AMZN) Daily Chart
Having lost aroun 30% from it's peak, Amazon (AMZN) has now violated key support around $116 a share and poses a real threat of a gap-fill scenario. This means that there is very little support between current levels and it's pre-breakout levels from October near $98/share. Should this gap-fill occur, it would represent a 12% loss from current levels of approximately $111/share, which is already down over 5% for the day.
The rest of the market is taking heat today, testing the lows. Could Amazon (AMZN) be a leading indicator for things to come? I would rather be watching from the sidelines when we find out. Trade'em wisely.
Disclosure: No Position