Momentum stocks just saw one of the biggest reversals in five years. What usually happens next.

Momentum-focused stocks and strategies saw a sharp reversal on May 8, 2026, as the iShares USA Momentum ETF (MTUM) fell about 1.8% and a Goldman Sachs high‑beta momentum basket plunged roughly 8% — one of its worst moves in five years. Goldman warns stretched valuations and peak positioning (100th percentile over five years) make the recent unwind notable and recommends short‑term hedging in momentum and the AI complex. However, historical Goldman data suggest such large momentum drawdowns often present buying opportunities: average gains of ~1.45% over one week and ~22.9% over a year after similar unwinds. The piece frames the move as a mixed signal — corrective but potentially a reload opportunity.