SQQQ’s intraday momentum updates on Yahoo Finance point to repeated tests of resistance levels, suggesting buyers are defending bearish bets. This coincides with sector-wide weakness in software and cloud names. CFRA’s Stovall indicated that the S&P 500 can go higher, but expects a correction ahead, as quoted on CNBC. No wonder, hedge funds are selling stocks at the fastest pace in three months and stepping up short bets, as quoted on CNBC article. While that might sound tempting, potential losses can be just as pronounced. Using the hypothetical example above, when the Nasdaq jumps 2 percent, a leveraged short ETF could plunge around 6 percent, depending on the underlying assets used. SQQQ’s Yahoo Finance profile indicates a YTD gain of over 14% during recent market turbulence. Options activity shows increased call buying, consistent with traders betting on extended downside in growth stocks.