<center>![](https://cdn.steemitimages.com/DQmT4zvTaKLHu3zaemh6R7ehqTnD52v1Md8LZi2u6o4Snzd/image.png)</center>

Amazon reported third-quarter earnings on Friday which disappointed Wall Street.  Earnings beat estimates, but revenues ($56.6 billion) were below expectations ($57.10 billion).  On top of that, Amazon gave weaker-than-expected guidance going into the holiday season.

Prior to Amazon announcing 3rd quarter results, Amazon could do no wrong.  The stock was up 47%, its market cap increased by $400 billion and Amazon became the second company to reach the $1 trillion dollar valuation market cap prior.

<center>[Amazon…The Next $1 Trillion Market Cap Company]( https://steemit.com/money/@rollandthomas/amazon-the-next-usd1-trillion-market-cap-company)</center>

But Amazon was priced for perfection and people were willing to pay for that perfection.  However, after disappointing Wall Street, Amazon closed down 8% on Friday.  And that sale off continued today. 

![](https://cdn.steemitimages.com/DQmWJ1wjwstnnoby2ppwLR8dEAQKLeVCdQSadjPayQzkdoS/image.png)

Some people think the price decline represents a buying opportunity.  I don’t disagree that Amazon is selling at a cheaper discount today, but I see further downside due to a lack of demand. Actually, I see another $400 of downside possibly because the next real demand on the monthly chart is at $1150.

![](https://cdn.steemitimages.com/DQmQ78PZHsbjYtAxHMwq6iYAULufDE7bydMYTbxYZsBDHDh/image.png)

and the next real demand on the daily chart is at $1240.

![](https://cdn.steemitimages.com/DQmXQZXbhVEhwh9NBwjj2bHtM7ZXWkeP7nfBNZxZ76CrN7X/image.png)

The nevertheless, the first key area to watch is the last level where price dipped, but ended up taking price all-time new highs above $2000...that level is $1375

![](https://cdn.steemitimages.com/DQmeqo3grLVksL4eBmFACkMBgXY6zSq7j9Na1U3PwHPMC6E/image.png)

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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