Morning Trend | After Snowflake's heavy sell-off, will the shorts continue to dominate? Is a rebound window coming?
Yesterday, Snowflake (SNOW.US) experienced a significant decline with high trading volume, and attempts to rally during the day were repeatedly thwarted, indicating a clear suppression of short-selling sentiment. On the funding side, there was a predominant outflow of large orders, and the battle between bulls and bears was intense, with short-term sentiment nearing a freezing point. Such a volume drop often signifies a large amount of floating shares being sold off, and some traders believe that this has entered a "post-cleaning of chips, possibly nearing a rebound point." After hours, there was a noticeable increase in voices looking to bottom-fish and seize rebound opportunities, but it remains unclear whether the main players have truly entered the market.
From the market observation, SNOW oscillated around the previous support level throughout the day, with some funds attempting to support it, but they were pushed back by selling pressure at high levels. The daily line has moved far away from several dense moving average zones, indicating extreme short-term overselling. The lower band of the Bollinger Bands was breached but quickly pulled back. Technical traders are generally waiting for further contraction in volume and signs of a bottoming out, while short-selling funds are concerned about the depletion of downward momentum, making short positions less advantageous. Additionally, options data shows that short positions have not significantly increased, and there are signs of cautious short covering in the afternoon, with some observing funds gradually positioning for rebound opportunities in the intraday game.
Currently, there are no new negative news releases, and the main logic for the decline stems more from earlier mediocre earnings guidance and a gap from high market expectations, along with an amplification effect from institutional rotation out. The prevailing view is that if SNOW stabilizes with reduced volume today or shows clear signs of low absorption support intraday, the rebound window could be triggered at any moment—especially if there are unusual fund movements during the day, as the main players' covering actions could likely ignite a T+0 short-term buying spree
Technical Forecast·
