#MarketPullback

Momentum stocks that helped drive the market’s epic recovery are stalling. Get ready for a ‘buyable’ pullback.

After helping to power the U.S. stock market’s historic recovery from April’s tariff-induced selloff, many of the momentum names popular with individual investors are showing signs of exhaustion.

That means investors should approach with caution over the coming weeks. Because another opportunity to buy the dip might lie ahead, according to Jonathan Krinsky, a technical analyst at BTIG.

“While it’s still too early to say we are getting a more widespread pullback, we are starting to see some early cracks in certain high-beta momentum names today, with many leadership stocks working on potential downside reversals,” Krinsky said in commentary shared with MarketWatch on Thursday.

As Krinsky pointed out, Goldman Sachs Group’s long-only basket of high-beta momentum stocks appears to have stalled out just shy of its year-to-date peak from February.