Despite the negative headlines this morning, data shows that the short volume for SMCI isn’t high. There is roughly $2.2 million in short volume, and this is pretty low compared to past short volume against SMCI. I think SMCI has already dropped significantly, and I wouldn’t take a short position here. The two key price levels that I would monitor are $710 and $235. I think SMCI is much more likely to rebound back up in the short term.

I think SMCI will have a short term rebound, but I’m bearish on the stock market over the next few months. SMCI has a bearish seasonality trend from Aug – Oct. I think there can be some more downside between these months. SMCI has lost support in the yellow zone, and could drop down to the white support line around $338.50 over the next few months.

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