Yesterday we noted that Amazon (AMZN)'s failure to follow through to the downside multiple times in the session followed by a recovery rally effort intraday suggested it had ended its two-week correction. AMZN's thrust today has hurdled key resistance at 214.45-215.00, and has followed through to an intraday high so far at 217.82, which is very close to a full-fledged test of the all-time high at 218.36.

More importantly, it confirms the conclusion of the July high-level consolidation period and the start of a new upleg.

The initial target zone of the current upleg is projects to 222-225 next and then to 230-235 thereafter.

For today only, if AMZN surges above 223.30, we will exit our long model portfolio position. Otherwise, we will hold through this evening's earnings release from Apple, looking for "sympathetic strength."

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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