The Chinese Internet Firm MOMO reported strong earnings, but the market still sold it off. Here's some excerpts from the Investor Business Daily Regarding earnings :Momo said revenue rose 214% from the year-ago quarter to $312.2 million, beating the consensus of $286 million. Adjusted earnings rose 192% to 35 cents per share, ahead of views for 31 cents. But Momo said that expenses jumped 189% from the year-ago quarter to $246 million. The increase was attributed to higher revenue sharing with broadcasters related to Momo's live video. It also attributed the higher costs to an increase in marketing and promotional expenses to enhance brand awareness, attract users and promote its live video service, among other reasons.And in terms of guidance:The company expects third-quarter revenue in the range of $337 million to $342 million, representing a year-over-year increase of 115%-118%. The midpoint of $339.5 million is above the consensus estimate of $307 million. Momo has shown triple-digit revenue growth in 10 of the last 11 quarters. The company came public in December 2014, pricing shares at 13.50.(investor.com)A Technical Correction?- As we can see on the daily chart, MOMO has about quadrupled from the lows in 2016 to the highs of 2017. - But, price was unable to push above 47 twice, developing a possible double top.- Earnings and guidance were great, so what gives?- Well, from a technical standpoint, maybe price is overbought and we are simply observing a technical correction.- If so, traders might be waiting to buy on this dip. - Here are a couple of potential support levels:1) 35-36: the current neckline area and support/reisstance pivot. Maybe instead of a double top, MOMO goes into a sideways range. - 32: 200-day simple moving average (SMA).2) 28-28.50 area: the top of a previous consolidation.