$SOXS fell from 42.8 to 38.47, then bounced back to 38.55. In just one hour, this needle covered the same range that others took a full day to move—down 9.12% at the close.
The trading value of 54 million isn’t small, but the pullback strength was clearly insufficient. After the shorts slammed it down, the longs didn’t catch it much. Funding rate is +0.0177%, within the normal range. Bulls and bears were not thrown out of balance—this was purely a liquidity stampede. The key support is at 38.47, the lower shadow. If that breaks, it becomes an acceleration phase. On the upside, resistance is around 42.8, the previous swing low from this leg’s selloff.
Set the stop-loss 0.5 points below 38.47. First look for a rebound to 40.3, and take half of it from there. Then we’ll see whether 42.8 can be touched before deciding the next move.
The pinned comparison post at the top of the homepage reviews how this same pattern has played out a few times—after reading it, you’ll have a better sense of what to expect.
#SOXS
The trading value of 54 million isn’t small, but the pullback strength was clearly insufficient. After the shorts slammed it down, the longs didn’t catch it much. Funding rate is +0.0177%, within the normal range. Bulls and bears were not thrown out of balance—this was purely a liquidity stampede. The key support is at 38.47, the lower shadow. If that breaks, it becomes an acceleration phase. On the upside, resistance is around 42.8, the previous swing low from this leg’s selloff.
Set the stop-loss 0.5 points below 38.47. First look for a rebound to 40.3, and take half of it from there. Then we’ll see whether 42.8 can be touched before deciding the next move.
The pinned comparison post at the top of the homepage reviews how this same pattern has played out a few times—after reading it, you’ll have a better sense of what to expect.
#SOXS