The market corrected in May, but many leading stocks simply went sideways and held up while this correction was occurring. Once the pressure alleviated on the market over the last 4 days many leading stocks have exploded higher.
Before this correction ended we talked about a number of reasons why the market was not poised for a meltdown, including lack of volume in inverse ETFs, emerging markets were starting to put in a bottom, and leading stocks were trading sideways and not breaking down.
Here’s a sample of some of the Stage 2 continuation breakouts that have occurred over the last few days:
Disclosure: I am long SMAR and KL.
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