Pretty much. Downward momentum in spec stocks instills fear and...

Pretty much. Downward momentum in spec stocks instills fear and the risk-averse investors sell out. Once the downward momentum ends, I think sell side will dry up again and price can easily gain upward momentum again.

If you look at the last few weeks, the market has been falling but SMA held up high. It only took a couple sellers to encourage a whole bunch of other people to sell and then snowball a bit. But with the market recovering a bit now, we should see selling stall a bit. Then all we need is buyers - the number of sellers at any time has not really changed in the last few days. At least that's my point of view.