Yesterday's plunge in Amazon (AMZN) changed my perception of the strength of the rally off of the Dec 29 low at 166.97. As of this moment, my pattern work argues that a complex corrective counter-trend rally is in progress that should propel AMZN to 190-193, but which likely will be followed by another loop to the downside that revisits the Dec 29 low.

That said, my sense now is that I should stand aside, awaiting AMZN to press into the 177-74 support zone prior to the anticipated next recovery rally phase.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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