CLO experienced a sharp correction, dropping from a high of 0.8560 in a single-sided sell-off, with a 24-hour decline of over 18%. Currently, it is oscillating around 0.62, appearing weak and lacking momentum. This downward trend is not just a simple technical adjustment; changes in position data are even more intriguing — since the early session high, positions have been continuously shrinking, indicating that large funds have already transferred chips between the 0.7 and 0.8 range.

Interestingly, there is a clear mismatch between bullish and bearish forces: on the large account side, the bears have always maintained an advantage, both in terms of account numbers and position sizes. However, retail investors are concentrated in the 0.6 to 0.7 range, attempting to bottom fish, making the divergence between the two sides obvious. On the technical side, the 1-hour MACD has already formed a death cross, with the green bars still expanding. There are no signs of a bullish reversal, and the market can only rely on scattered low-level buy orders to barely hold the 0.6033 line.

Looking ahead, if the price cannot stabilize above the 0.65 resistance level, the probability of the bears continuing to push down using their advantage is quite high, and the price may test around 0.55. Even if a rebound occurs, it would likely be a false rally, with the 0.70 barrier acting as a fortress overhead, making a breakout very difficult. The real foundation for a rebound will require a significant increase in positions, where the large accounts’ long-short ratio can see a substantial reversal; otherwise, this weak situation will persist.