Amazon, Inc.(NASDAQ:AMZN) has been a rockstar for years. As analysts and investors have underestimated it, the stock has always found a way to climb dramatically higher. What has changed? Analysts and investors are finally cheering and believing. This changes everything. It now means shorts are a minority and longs are a majority. Once everyone is bullish, a stock enters a bear phase.

Amazon has a beautiful, clean, crisp trend line stretching from February 2016 at a price of $475 to its current highs of $770. The key is to wait for a break of that trend line. Meaning the stock must close below it. When that happens, there will be a mega bear market on Amazon stock that takes it all the way back to $600, a key gap fill on teh stock chart. This leve is also near a Fibonacci 61.8% retrace of the move that started in February 2016. I am looking to short the stock or buy puts on that break.

Jenny Rebekka