“Big Dog” Wounded:

The largest holding in the XLY looks like it has been hit recently. One thing I hear many say is that everything looks rosy at the top, and to be on your toes because this is when things can quickly turn sour. Has the chart below of AMZN gone from a positive to a negative? It is early but we know that the best breakouts tend to work right away, and to add on to that if one does not only fail to act robustly quickly after the move but act in a fragile manner, that is a cause for concern. Its break above the cup base trigger lasted all of one day and is now on a 3 session-losing streak, which also registered a bearish evening star pattern. Last week did record a bearish shooting star candle and it has also lost its dominance against South American peer MELI. MELI is digesting the 15% WEEKLY gain ending 9/1 well, its second strongest WEEKLY advance in 2023 so far. They both trade 4% off most recent 52-week highs but MELI looks like it has the momentum edge currently.

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