CHARTS
A 3.24% move higher in AMZN can energize otherwise wandering indices. It gapped NASDAQ and SP500 off the 20 day EMA. It rescued DJ30 from a trip to the 50 day MA. And of course, it brought NASDAQ 100 back to the top of the recent range.
What happens without Berkshire letting people know it was buying AMZN? Not much. That is why we did not buy AMZN Friday but will see if it tests a bit early week. We want to buy it, just didn't want to buy options inflated by the Berkshire news.
DJ30: Gapped higher and cleared the 20 day EMA after it was well on the way to the 50 day MA. Without AMZN the Dow is at the 50 day. As it is, DJ30 managed to hold the five week lateral range below the January 2018 high. Oh yes, there is still another peak from early September before the all-time high from early October.
NASDAQ: A new closing high by 2 points. Smashing move. No, it was not bad. A test of the 20 day EMA in a very shallow 3-day pullback then a gap and rally upside. AMZN really helped and all the FAANG played a roll, even GOOG as it rallied 1.96%, back toward the 50 day MA it gapped below on Tuesday. Lots of stocks helped the move back to the top of the range. The question for next week is will they help it break through that range with a -- altogether now -- definitive move.
SP500: Gapped off the 20 day EMA the same as NASDAQ, missing an all-time closing high by 0.2. Still at the prior highs, still suffering from some distribution the past week at the highs. Even so, it is hanging in, and if the techs lead, SP500 will follow. Oh, and the financials are still solid.
NASDAQ 100: A very solid two week lateral move, riding out INTC, GOOG and putting in a solid session Friday to take it back to the top of the range and a new closing high though not a new all-time high.
Source: Investment House