Is Amazon (AMZN) Breaking Down?

Technically, needless to say. I like what they offer and I buy from them often, but that has nothing to do with what I'm seeing in the chart.

The stock market seems to be going back to the "bad news is bad, less bad news is bad, good news is bad" mode, and that's not a good time to be long.

Online retailer Amazon (AMZN) seems to be breaking down. The stock broke through its 50-DMA yesterday, and it continues to go down today. It may have something to do with the FTC announcement of its intentions to regulate blogs (see my post on the other blog), it may not. (Pure technical analysts will tell you that it doesn't matter at all, as all's in the chart. I don't quite buy that argument yet, but what do I know?)

Here's AMZN's 3-year weekly chart. It looks bearish to me. Negative divergence between RSI and stock price, between stock price and volume. It is about to touch the mid bollinger band, which coincides with the trend line from the November 08 low.

It's possible that it holds at that line, but also note that since 2007 high the stock has been making lower highs. AMZN's beta is 1.4, so when the general market starts to head south it tends to go down more than the market. (Of course the high beta means when the market goes up the stock goes up more than the market.)

The break below 50-DMA on a daily chart is a sell/short signal, but that signal is followed by any and every technical traders. Probably the first break (right now) is too obvious, and this could be just a fake. I'm just watching, trying to learn.