Netflix (NFLX) is well off their highs of the day which is nearly where the stock opened. I had mentioned to my Stocks trading signal room to look for NFLX to slide early. While the stock was up big thanks to the growth of subscriber numbers, their Q4 guidance was well below what the streets had expected. Usually, a guidance that far off is a recipe for a massive selloff (Ask STMP). While I didn’t think NFLX was going to drop 20%+, I just felt it would not sustain their gains early on. NFLX did drop over 20 points from their highs, but they are starting to bounce back. The bounce is the key phrase here. NFLX made a very bullish maneuver today. The stock bounced or rejected at a key technical level that was resistance the prior day. Several days in fact. The bounce took place at the 50 period SMA on the daily chart. That has piqued my interest in NFLX for a short term play. While I do think NFLX is overvalued and I can see the stock moving lower over the longer-term than up, I am bullish on the stock under one condition. That NFLX REMAINS above the 50-period SMA. If that is the short term floor being put in, expect NFLX stock price to ascend. Possibly to the $315-$318 range in the near term. I would watch NFLX closely and see if the stock can rise and rise quickly.