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Did Netflix Just Hit Its Top?

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Netflix, Inc. (NASDAQ: NFLX) shares are trading lower by $2.54 to $678.65 in Wednesday's session. Earlier in the day, the stock rallied to a new all-time high at $706.24.

The sudden burst over $700 was instigated by the announcement that the company was will be splitting its stock 7-for-1 for shareholders as of the July 14 payment day.

However, the rally was interrupted by Carl Icahn's tweet that he exited the issue in Wednesday's session.

That was all the battered and bruised short sellers needed to attack the issue. On its initial swoon it shed $18 in the first minute of frenzied trading action, falling from $706 to $687.80. After a quick rebound to $700, another wave of selling bombarded the issue.

So far, it has reached $678.61 and is not trading far from that level. If it continues to make new lows for the session, there may not be any identifiable support levels until Tuesday's low ($670.25). Beneath that level, Monday's low is way down at $659.32.

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