Usually, when stocks make large and rapid moves lower, the sellers panic and don’t care about the price they can sell their stocks at. They just want out.
As a result, when the selling is finished, there is typically some kind of rebound or bounce. After taking some time to think about it, some of these sellers believe they made a mistake and buy their shares back.
But this didn’t happen with Amazon.com, Inc. (NASDAQ:AMZN). After making a huge move lower there was barely any rebound and the stock has rolled over. This is bearish action and it suggests that a new downtrend may be forming.
