Direxion Daily AMZN Bull 2X Shares is trading slightly lower at 43.44 today, down modestly on the session, but the broader Elliott Wave structure remains firmly intact following a strong multi-leg impulsive advance tied to underlying strength in Amazon.com Inc..

The current pullback appears to be a normal intraday or short-term consolidation within a much larger developing Wave 3 structure rather than a meaningful breakdown in trend.

From a structural standpoint, the sequence remains clearly defined.

The initial Wave 1 advance carried AMZU from approximately 12 up to 51.

51

That move established the first impulsive expansion phase, reflecting the ETF’s leveraged response to the broader bullish trend in Amazon’s underlying price structure and improving macro sentiment around large-cap technology and AI-driven retail infrastructure.

Following that, AMZU entered a Wave 2 correction from 51 down to 25.

25

That retracement reset momentum and washed out excess leverage, which is typical in 2x leveraged products after strong impulsive moves. Wave 2 phases in leveraged ETFs often appear sharper and more volatile due to compounding effects, but they do not necessarily damage the larger trend if support holds structurally.

Once buyers regained control above that base, AMZU entered what now appears to be a developing Wave 3 expansion phase.

The key technical framework remains the Fibonacci extension structure.

The first major upside target at the 1.618 extension projects toward approximately 88.

88

That level now becomes the primary medium-term objective if the current impulsive structure continues unfolding as expected.

Beyond that, the more extended 2.618 Fibonacci projection targets approximately 127.

127

That represents a much more aggressive upside scenario consistent with sustained momentum in Amazon’s underlying trend and continued expansion in AI-driven cloud infrastructure demand through AWS.

From a technical perspective, the current pullback to 43.44 does not meaningfully threaten the broader structure unless it evolves into a deeper retracement below prior consolidation zones. Instead, it appears consistent with normal volatility within an active Wave 3 environment, where short-term pullbacks are often used to reset momentum before continuation.

In leveraged ETFs like AMZU, these minor declines are often exaggerated due to daily rebalancing effects, but they typically remain contained when the underlying trend remains strong.

The broader context continues to be driven by Amazon’s long-term positioning in cloud computing, AI infrastructure services, e-commerce logistics, and enterprise digital transformation. These macro forces tend to translate into strong directional trends in leveraged instruments when market conditions are favorable.

Psychologically, this type of movement often reflects temporary profit-taking after a strong run toward the 50 region, followed by rebalancing of short-term positions. As long as price structure holds above key support zones, momentum traders typically view dips as continuation opportunities rather than trend reversals.

The key Elliott Wave framework remains intact:

With AMZU currently trading around 43.44, the structure continues to favor bullish continuation as long as the ETF maintains its broader impulsive trajectory and does not break below key structural support levels formed during the Wave 2 base.