Shares of Amazon.com, Inc. (NASDAQ:AMZN) may be forming a new downtrend. Because it's such a large company, this could have a detrimental effect on the rest of the market.

What To Know: Last August, Amazon's stock reached the $3,500 level and a sell-off followed. It also reached the $3,500 level in October and the same thing happened.

In early April, shares reached this important level for the third time. And once again, a sell-off followed.

Now the same thing seems to be happening.

What's Next: On June 17, Amazon hit resistance at the $3,500 level for the fourth time. For more than a week, the bulls and bears seemed evenly matched.

Now it looks like the bears have won, and another downtrend may be forming.