Although they are still in multi-quarter uptrends and have indeed been acting like leaders this year, the price action in Google and Netflix is concerning today. Moving averages are best used as litmus tests or reference points to gauge underlying strength on pullback or lack thereof. Using them as automatic buy signals can often be a recipe for an unpleasant experience.
Here, GOOG NFLX seemingly were holding up well, but buyers still did not show up in full force to give us a long trigger, as both stocks pulled in to their respective rising 20-day moving averages. They still might rush in for support soon. But are you can see so far today the sellers are picking up steam.
__________________________________
__________________________________
