Amazon Takes Out Key Level

As the markets are hovering slightly higher on the day, Amazon.com, Inc. AMZN is getting hit sharply. The stock is trading at $160.75, -4.93 (-2.98%). This stock has been a leader and it is rare to see it dropping with the Nasdaq is higher. Other leading tech stocks are also lower including Google Inc. GOOG and Baidu.com, Inc. (ADR) BIDU. The drop on Amazon.com today is important for one main reason. With todays drop, Amazon.com has broken the 20 moving average on the daily chart. This is significant and possibly bearish not only for the stock but for the overall market as well. Assuming a close below and confirmation, major support on AMZN does not show up until $152.00. Gareth Soloway Chief Market Strategist