Looking for Clues in Amazon

Published on Tuesday, 08 December 2009 10:04 Written by Christopher Lynn

New York, Dec 8^th (TradersHuddle.com) – With the market selling off this morning, investors will be looking for clues of market direction on the big market leaders, one of which happens to be Amazon.com Inc (NASDAQ:AMZN).

Although Amazon is a stock that is wrongly classified as big large cap technology, as its nothing more than a consumer stock. Regardless of the ongoing debate on its correct classification, Amazon has been able to provide blockbuster earnings and the market has rewarded them with a big push in its stock price.

Shares of Amazon have been on a steady decline after breaking out above $132.50, now we have Amazon back down at that break out level. Traders are watching Amazon’s stock to see if that level holds, as it will provide support for the continuation of the rally.

If that breakout level fails, we might see further weakness in Amazon toward the low $120s.