Market setting up for a larger pullback than we have seen so far in 18 months.
Momentum and growth names have entered correction zone and unlike previous corrections of 5 to 6 % , they do not show orderly pullbacks or continuation setups.
But markets do not go straight down, so there will be in near future a bounce and after that more failures.
Once the faster phase of selling is over, selective long work as market starts rotating in to new names. Those stocks that break down after a counter trend bounce offer low risk short setups.
The above action likely if we get multi leg pullback. So far in last 19 months we have had only one leg corrections.
While yet another miracle of V shaped recovery is possible , it based on setups looks like a lower probability event.