Netflix (NFLX) is setting up to be a good short sell candidate. Since the bottoming process back in April, 2014, Netflix has hit DeMark extremes in both daily and weekly charts, all without making a fresh high – the daily chart has now recorded “13’s” in both TD Sell Countdown and TD Combo Sell. The weekly has a TD Sell Setup “9” count. This confluence, combined with the monthly chart on the verge of a bearish price flip with a June close below 445.63 makes a good risk/reward short for aggressive traders. Trading against 445.63 or the highs at 450.82 makes a reasonable stop level.
Market Summary: The case for major market indices to print additional “13’s” still stands as the market corrects sideways. Many equities are already beginning to record “9” and “13” counts. Current examples being Netflix above or Tesla from last Wednesday. How these individual stocks perform around their own price exhaustion signals can help direct where the major indices are headed next.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Neutral if SPX cannot close above 1959.73.
Expectations are high the SPX can continue the uptrend. There is enough time elapse since TD Sell Setup recorded a qualified “9” count on June 20, 2014. If the 4 hour SPX cannot break into a bullish momentum trend today, then a cautious approach will be taken.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Neutral if SPX closes below 1949.48, next Monday’s bearish price flip.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Switch to neutral if SPX closes below 1923.57 (updated June 23, 2014).
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH
Switch to neutral if SPX closes below 1859.45 on June 30th (updated June 2nd).