Netflix and SPX tend to move hand in hand with each other. When their patterns begin to separate, they correct relatively quickly. In this case, NFLX is setting up a bear wedge that, in this bull market, will fail to breakdown fully, but should bring the current NFLX price in line with SPX's chart, resulting in a 5-15% drop. Target 335, which coincides with both the SPX chart, and Netflix's 50 week average.
From there, market dynamics will determine whether a full breakdown is possible, or a long position would be justified.
From there, market dynamics will determine whether a full breakdown is possible, or a long position would be justified.
Comment:
Still active. Have not reached <= 340, but 342 was touched and expect to see sup 340 in the coming 1-2 weeks.