The Nasdaq is already down 12% and is testing the September highs. Nothing goes straight down.
This is a support/resistance area that is currently being tested.
Watch for the right price action on the stocks you like. Some of the big movers have corrected 50%.
I like to watch for places to make a bounce. Ballard (BLDP) is a good example, with horizontal support at $21 and uptrend support there. If you're wrong, you can set your stop relatively close.
We've been declining for three weeks. It is not uncommon for a downtrend to last 4-6 weeks. I don't want to be too negative here. At some point, we bounce.
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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