Momentum Monday – From Failed Moves Come Fast Moves

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The market correction continues with full force and there are no places to hide. The stocks that held the best in the past couple of weeks – enterprise software, are among the hardest hit today. This is what typically happens during forced liquidations when people emotionally decide to get out of everything at any price.

The area near 260 was a major level of support for most of 2018. Today that level was breached on high volume, which typically means that it will now act as a resistance.

People keep saying that some of the most powerful rallies happen in the context of a bear market. It is true, but they are not that easy to time. Some of the important signs of a potential turnaround bounce would include a failed breakdown that leads to a strong close and a gap up on the next day.

In today’s show, we go over the price action in SPY, QQQ, OKTA, ZEN, TWLO, BBY, and some of the defensive stocks.

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