Beware the Check-Raise

For a while now, the well-known theme of this market has been that much of the slowing upside momentum and even carnage in select sectors has been masked by pristine charts in leading, glamorous issues, such as AMZN CMG FB GOOGL NFLX PCLN UA, etc.. 

The conventional wisdom of the current bull market suggests that these leaders are telling the truth about all of the consternation regarding the concerns of the market--That, in the end, it is much ado about nothing before we resume the bull run and go much higher on the major averages. 

Still, a lingering issue with a bifurcated market is when we see the very weak parts (energy, transports, semiconductors, etc.) remain weak, while the strongest parts (leaders) finally succumb. That is obviously a dire scenario, one which failed to materialize at various junctures in the current bull. 

But when we look at the action in AMZN today, even GOOGL, below on the daily chart, it does raise an issue if this time we do, in fact, see the strongest ends of the market succumb to broad market pressures and fail to hang in there. Recall that "holding up well" in a market drawdown is much different than providing an actionable long entry point for a swing trade. 

I will flesh out the AMZN GOOGL analysis, and plenty of other ideas for Members in my usual Midday Video, filming now.