At the end of July following the swan dives in NFLX and FB, we flagged that 360 degrees down from NFLX' 434 high is 345.

Often stocks overshoot 90 degrees which ties to the low print in NFLX last week at 328.

NFLX has traced out what looks like a little Bear Flag. That could imply a test/undercut of lows or conversely when Bear Flags fail, it means a push higher. Through 345 signals an attempt higher.

Also at the end of July we sent a note on FB offering that after a 360 degree decline after earning's as well, “it would not be surprising to see a snapback to 50% OF THE YEAR'S RANGE AROUND 183-184.

Be that as it may, FB is likely destined to trade below whatever July's lows are in August (after July's massive outside down month). Consequently, a rally that plays out to around 183 prior to trade below July's low sets up a nice short side opportunity.”

We are stalking the hourlies and 10 min charts on both names to see if they set up as both will be good guidance on the market.

180 degrees down from FB's all time 218-219 high ties to 190, so there is potential to 190.

Tomorrow morning's report will map out both FB and NFLX on the Square of 9.