The Last Good Blockbuster Night

It has been a while since we "made it a Blockbuster night," as the ascent of Netflix has done its part of creative destruction over the last decade or two. 

On the monthly chart of NFLX, gapping up with authority today and squeezing the many shorts in the name, we can observe several factors on this timeframe. 

First, the lower light blue, horizontal line indicates that the 2011 highs, prior to a steep crash, have converted into support with each bout of weakness in 2013, 2014, and this year, thus far. This is obviously a big checkmark in the bull column. 

But the weakness seen late-2014 and earlier this year could have easily formed a large, loose and sloppy topping pattern. However, once again buyers have done their part to negate potential tops in this multi-year bull run, with NFLX now threatening to bust up and through September 2014 highs of $489.29.

Earnings are scheduled for Wednesday, and I am looking to see if those prior highs turn buyers away, once again. To be sure, it is not a bet I would make in this tape, given how many gaps higher we have seen from marquee issues out of corrective patterns in 2015 (think: AMZN LNKD PCLN, and NFLX earlier this year, for example). 

But at least we know where the goalposts are now.