AMZN completed the full neckline at 106. There is a right shoulder. Now AMZN, at 100, has closed below the neckline.
True, the others have not completed the right shoulder. So they are not confirmed. AMZN is confirmed. The others are getting close. That is what my original post said.
Also, my books do not say that downsloping neckline is necessary, only that downslope is the most bearish of the 3 possibilities: up, level, down.
Oh, well. Maybe this will all just blow over, and YHOO can be selling at 250 in a couple of weeks.
Just keep in mind that the longer this sector goes without having some sense knocked into it, the more dangerous it becomes. The entire sector is so far ahead of itself. And the volume has been restrained so far. Most people are still sitting on huge gains and expect to just weather the storm. The power of downward momentum has not really kicked in. If it does, how far down are you willing to ride YHOO? Limit your loss to 15%? 20%? 30%?
The events that seem to have finally set off correction are:
* earnings out, no more "surprises" to pump up stocks
* end of lock-up on EBAY and others
* eTrade technical problems
* inability of LCOS to find a good deal, settling for a deal below mkt
* secondary offering by MSPG
* pump up from split announcements are over (notice how YHOO actual split did nothing for YHOO)
* end of January effect |
