AMZN, GOOGL update October 27

AMZN: missed badly on earnings today. So badly (dropped to $750 after hours) we needed to re-assess the charts and conclude that there’s a possibility 5 waves up off the February low have completed. For the iii, iv, 3, 4, 5 count to remain valid price should not drop below $740 and a drop below $732 will all but confirm price will go much lower. Since, in that case we don’t yet know the full wave degree off the February low we at least anticipate mid-$600s to high-$500s. AMZN bulls are warned!



GOOGL: Although it had great earnings the initial reaction was quickly sold off and now it’s only up a meager percent point or so. Hence, great earnings were likely already priced in: no surprise. Thus we’re left with two possible counts: red ii or black 2. In a sense AMZN is in the same boat. Please note all the negative divergences on ALL TIs, this suggest lower prices are coming. First the lower blue trendline should provide support; and that’s right in the 1, 2, i, ii count’s wave-ii target zone. The line in the sand is the 2/iv price level at $782. A drop below it and we should ideally see $775-$735. That’s all there is to it for now. We don’t want to look any further for now; so watch first $805, then $782.