. >> let's get back to amd down about 24% off the back of earnings let's go off the charts with todd gordon of trading analysis.com how does it look. >> achld was trying to 23, 24, 25 that was the key support for my technical poif. i was trading 17%. the big drop the drop from the highs in the mid-30s is justified here. looking at this longer term chart and we looked at in -- this is not quite what i'm alonging for but we go back, starting are the shorter term first. this is the daifl chart. we can see the all technical algos watch the up friend. tried to get a bounce couldn't fell below that's around the $25 mark i mentioned amd looks like it could go lower. support from that the $8 low earlier this year has been lost. this is the daily. up to the we cannily chart and get the context of where amd is coming from. maybe i can put reasoning behind the failure. same chart hit the weekly if we have it. it's amazing i want to show it to you it's just a long -- no that's not it we are rolling with it if you go back to the 2001 high at amd you connect the 2007 high trend line all you guys can do i

let's go off the chart to the trading analysis founder todd gordon todd you went in short netflix. >> we were talking about it. the general skens sus just it's been weak, underperformer. the hard edge of the short the wherebiers and sellers "the guardian" are agree it's valued. i played the expected move .options market priced a 35 move higher or lower i had a defined risk opg strayed it went out the other side we went out to make it even .a 35 bucks we are at the he o at the expected move in ferms of where options market see it. we are back to the old october highs at resistance. is it the -- are we out of the woods? i'm not sure let's put in context this is netflix the last couple years, a beautifully defined up trend channel. as you move to the upper end of the channel this is overbought we continue to be overbought we could go up and try to re-test the upper areas. but, again, the stock is not -- i don't think it's going to break out of this uptrend channel. we might see short term strength but still overbought i was playing for a move become to the buchlily defined up trend cham

todd gordon, cnbc contributor, joins us here with the look at the charts todd, has there been any damage to the nasdaq, not just down today, down about 4% over the past week or so. >> sure, sure. the nasdaq has experienced a nice period, a nice run here what you're seeing recently over the last couple of weeks is, one, we have a double top, number one number two, if you extend this trend line, we have lost up trend support. is this catastrophic no but i think a retest of the july and june lows right around the 7,000 mark is in order i am short the nasdaq against the long s&p position we'll talk about. i think there is more short-term pain, but long-term i don't think so. >> you think possibly we could go down about 700 points where are we now 5% would be 3500, 350 points 50% retracement of a move we have seen since may is not obnoxious. >> you look under the hood, what concerns you the most. the f.a.n.g. plus index, right, that's in correction territory we have haven't seen much leadership from this group in the past more so today we have the cloud stocks joining in, payment stocks joini

. >> todd, thank you todd gordon of trading analysis. of alibaba in the past i mean 10 cents seems to get worse every day. >> plenty of people buying alibaba. i have a nices sizable profit if in it but it doesn't matter when you have paper profits and you start to look at them you assume they were yours to lock in but you never sold it. so to me even though i have a profit in it, i still think that when the tariffs start to resolve themselvesable aa is at a reasonable valuation going to be a screaming buy. >> how worried should we be about netflix not only is the long duration growth stock but levered balance sheet. >> a very levered balance sheet. valuation -- there is no valuation, right so that's the one thing we know about this is okay -- it's also -- dwregt is going to be in asia if you talk about the slowing kmienz economy and a levered balance sheet with very little assets asset light business then this does look vulnerable it has support there to me it looks like the same support apple has. i wouldn't be superaggressive about sel

let's bring in todd gordon, founder of trading analysis.com. viously we were set up for some kind of a strong bounce we've gotten one what are the next tests for this market if you're looking at the s&p? >> sure, michael if we could look at the longer turn i want to look at the last two years of the s&p before we drill down into what's happening now this is actually two plus years of the s&p tracking the 200 day moving average i'm usually not one for moving averages i say why be average try to be above average. but what you'll see is we've got a lot of tests of this 200 day simple moving average going back to the summer of '16 there's one, two, three, four, five -- six, right now is the sixth test of the 200 day. we're trying to get below it it has defined the range a lot of these algos a lot of these systems traders they'll buy. you don't need the 200 day to hold there's several over shouts and then the buye erers come in and scoop it up. this is 2018 in the s&p 500. obviously as you can see we are net range bound. it's been a very choppy year

getting slammed once again today down nearly 2% on track for its worse month since november of 2008 todd gordonbe the next move. todd, take us through the qqq, the nasdaq 100 etf tchlt where do you think it settles out. >> sure, michael this is the going to define where we see the 2% lows the scale over here, we have a $60 move from 80 from compares to 200 on a percent change is very different let's go to the next one which is correct if you go to cnbc's chart, you will see that. it brings the trend line closer and that's key we are supported and the up trend is intact. this is the weekly chart keep in mind as we get down to the daily, there it is right here the support level that must hold in my opinion and this is the weekly, we went all the way back in 2008 is right around $150 what's going to happen is it is going to correspond with the intersection of the trend line this is your must hold line here do it here but also define the risk below that ten year up trend. >> erin, on a fundamental basis, are these companies what you want to own? >> these are still strong fundamentals but a lot of t