Yesterday's US trading session was rather calm and not much volatility was observed on the main sectors. Changes on NYSE were minimal. NASDAQ lost -0.3%, SP500 -0.1%, and DJIA gained + 0.2%. The situation changed after the first results were published.
After the session, Netflix published the results and the figures proved to be, to put it mildly, unsatisfactory. The most serious problem was the surprisingly low increase in the number of subscribers (5.15 million compared to expectations at 6.27 million), which was also below the forecasts of the company itself. Combined with careful guidance on the third quarter of 2018, this situation triggered double-digit drops in share prices in the aftermarket trading that might drag NASDAQ down. The second topic will be yesterday's failure of the Amazon website in one of the most important days of the year, a very promoted Prime Day. Admittedly, it took place before the shutdown, at which Amazon gained + 0.5%, but today investors will probably have slightly worse sentiment.
Let's now take a look at the NASDAQ technical picture at the H4 time frame. The uptrend is still powerful and the market has made a new all-time high at the level of 7837 yesterday, but due to the poor earnings of Netflix, this situation might temporarily change. The gap between the level of 7733 - 7788 will likely to be filled today after the market will open and then the bears will target the level of support at 7703 or even lower at 7638. Nevertheless, as long as the major support at the level of 7420 is not violated, the drop should be considered only as a temporary pull-back.
