Amazon (AMZN.US) is showing strong bullish momentum , with technical indicators suggesting the rally may have further room to run following a sharp rebound from recent lows. Strong Rebound From Key Support Levels Amazon shares have surged in recent sessions, climbing over 11% this week , marking its strongest weekly performance since early 2023 . The rally was triggered by a double bottom formation near US$200 , a key psychological and technical support level. This pattern was reinforced by bullish candlestick signals, indicating a potential trend reversal . The stock is currently trading around US$238 , still about 10% below its 52-week high , leaving room for upside. Bullish Technical Patterns Emerging Several positive technical signals are now in play: Inverse head-and-shoulders pattern breakout Bullish island reversal , reclaiming the 200-day moving average Break above a bear flag formation on the weekly chart These p...
Wall Street’s rally stalled at the end of its strongest week this year, as investors turned cautious ahead of critical US-Iran negotiations that could shape the outlook for markets and energy prices.
Rally Loses Momentum After Seven-Day Run
The S&P 500 Index dipped 0.1%, snapping a seven-day winning streak, though it still recorded its best weekly performance since November.
- Nasdaq 100 edged +0.1%
- Dow Jones Industrial Average fell 0.6%
Markets had previously rallied on in-line inflation data and easing geopolitical fears, but sentiment softened as uncertainty around the Iran conflict resurfaced.
Oil Drops Sharply, Gold Also Weakens
Energy markets saw significant volatility:
- WTI crude fell below US$97, posting its largest weekly decline since 2020
- Gold slipped 0.2%, reflecting reduced safe-haven demand
Despite the drop, oil prices remain sensitive to developments in the Strait of Hormuz, which remains partially disrupted.
Inflation Data Mixed, But Manageable
Recent inflation data showed:
- Headline inflation rose sharply, driven by energy prices
- Core inflation remained relatively stable, suggesting limited spillover so far
This has led some investors to believe that inflation pressures may be contained in the near term, although risks remain if high energy costs persist.
Bond Yields Rise as Rate Outlook Firms
The US 10-year Treasury yield climbed to 4.32%, reflecting expectations that the Federal Reserve may keep policy tighter for longer.
Currency markets were largely stable, with the US dollar little changed.
Geopolitics Remains Key Market Driver
Investor focus is firmly on upcoming US-Iran talks in Pakistan, with Donald Trump reportedly increasing pressure for a deal.
However, risks remain elevated:
- Ongoing tensions in Lebanon
- Continued disruption in the Strait of Hormuz
- Fragile ceasefire conditions
A breakdown in negotiations could trigger renewed market volatility.
Earnings Season Set to Begin
Attention now shifts to the start of earnings season, led by major banks including:
- Goldman Sachs
- JPMorgan
- Citigroup
- Bank of America
Stronger trading activity amid recent volatility could support solid earnings results.
Investor Takeaways
- US stocks paused after a strong rally, with investors turning cautious ahead of Iran talks.
- Oil prices fell sharply, easing inflation concerns but highlighting ongoing volatility.
- Core inflation remains contained, though headline inflation is rising due to energy costs.
- Bond yields are climbing, reflecting expectations of higher-for-longer interest rates.
- Market direction will depend heavily on geopolitical developments and earnings results.
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