The most basic of trendlines can be found on the Amazon monthly chart, below. After this recent post-earnings drop, the presumption is that this support trend will likely break and, at a minimum, reset Amazon’s long-term bull run. Of course, there is also the risk the support break morphs into a deeper bear pullback.
Much like the NFLX P YELP drops lower, though, we can see big money striking decidedly more cautious tone even with the rally in the major averages over the past week or so.
I would resist bottom-fishing Amazon for anything more than a quick one/two day flip with the downside risks still pronounced and the earnings quagmire not likely to have run its course yet.