My pattern and momentum work argue strongly that Amazon (AMZN) completed a major corrective process at its Dec 29 low at 16.97 off of its September 20 high at 244.30.

All of the action off of last week's low at 166.97 represents the initiation of a bottoming period that should morph into a powerful recovery upleg into the 200-210 initial target zone.

Only a violation of 166.97 will invalidate my current outlook.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.