“River” Runs Through It:
The Amazon in South America is the longest in the world, and it is the largest holding in the XLY at almost one-quarter of the fund. It commands respect not only in the consumer discretionary space but overall market as well. The daily chart below of AMZN is self-explanatory and last week it took charge against the second-largest holding in the fund TSLA. Tesla recorded a bullish harami on Friday with a very tight inside range compared to the Thursday session which slumped 14% on the heels of a TWTR feud with the commander-in-chief. Interestingly, peer RIVN has been holding its own against TSLA since the start of 2025 and is now touching its rising 50-day SMA for the first time since breaking above a bullish inverse head and shoulders formation, often a solid entry point. Getting back to AMZN its WEEKLY chart now has the look of a cup with handle pattern as it now has 4 straight CLOSES above the 50 WEEK SMA and volume trends are very positive. On its MONTHLY chart, it recorded a nice bounce off the 50-MONTH SMA this April, very similar to the move last August which ignited a 5-month win streak. Deja vu?