Marriott International (NASDAQ:MAR) shares dropped Monday following third-quarter earnings that missed expectations. Despite a decline, the stock appears to have found support at a key price level, reflecting "market memory."

Sometimes, a price level that had previously been resistance can turn into a support level months later, as you can see on the Marriott chart, which is why our team of technical analysts and traders has made it our Stock of the Day.

In July, Marriott's stock was trending higher as demand outpaced supply, pushing buyers to drive the price up to attract sellers.

When the shares reached the $254 level, the dynamic changed. There was more than enough stock for sale. Every buy order could be filled without pushing the price higher.

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But then some of the sellers worried that other sellers would undercut them. They knew the buyers would go to whoever was willing to sell for the lowest price, so they reduced the prices at which they were willing to sell.

Other worried sellers saw this and did the same. This caused a snowball effect, driving the shares into a downtrend.

Marriott broke the resistance at $254 in early October and moved higher. When this happened, many of the traders and investors who sold their shares at the resistance thought they had made a mistake. A number of them decided to buy their shares back.

But they would only do so if they could get them for the same price they were sold.

Now that the stock has reversed and dropped back to around $254, many of these remorseful sellers are placing buy orders. The large concentration of these orders has created support around a price level that had previously been resistance.

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