Netflix profits double; shares begin to collapse.

Today Netflix reported fantastic earnings with the doubling of net profits.  As reward, the shares were off more than 5% before noon. Credit based stock rallies do not end on bad news they end on good news.  In fact, when good news is sold off as if it were some kind of earnings miss, that is what often defines the top. 

The chart below is either showing 5 or a of 5.  It is possible that todays decline is part of the a-b-c that sets the chart up for the throwover.  Throwovers are not guaranteed but they are very very common.  In addition, the most recent wave just missed touching the trend line.  This is typical for an A wave.  So the rally could have another week left in it or it might already be done.  The shape of the wave that is currently unfolding will either be 1-2-3-4-5 or a-b-c.  A breakout above the top rail says that the C of 5 wave is in progress.