SPX6900’s Rally Looks Unstoppable—But These Hidden Risks Could Trigger a Shock Correction

SPX6900 is flexing its muscles with a blistering rally—yet seasoned traders are eyeing cracks in the armor.

The bullish case: Momentum on steroids

Price action screams dominance, with the index carving fresh highs like a hot knife through institutional FUD.

Red flags waving in the algorithmic winds

Liquidity gaps, overleveraged longs, and that sneaky divergence between spot and derivatives markets—classic setup for a ''buy the rumor, sell the news'' bloodbath.

The bottom line

This market''s running on stimmy cash and hopium. When the music stops, the last bulls standing will be left holding bags—just like every other cycle in Wall Street''s casino.

The short squeeze is real, just not massive… yet!

The market has been unfavorable to sellers over the past 24 hours due to the sharp rally.

Liquidation analysis showed that over $680,000 worth of short contracts have been forcefully closed within this period. That’s not the highest SPX has seen, but it clearly shows traders getting caught leaning the wrong way.

Source: CoinGlass

When one cohort—in this case, sellers—suffers major losses, it often indicates strong movement in the opposite direction.

More importantly, Open Interest reached an all-time high of $143 million, confirming aggressive capital inflows into SPX futures.

Moreover, the majority of liquidations came from shorts, while long exposure steadily increased. Naturally, this combination reinforced the ongoing upside push.

Source: CoinGlass

82% of traders go long on SPX

At press time, 82% of traders were long on SPX—an overwhelming tilt.

While it speaks to confidence, such skewed positioning can quickly become fuel for the opposite move.

Source: CoinMarketCap

Funding data also showed that long traders are paying a premium fee at regular intervals. This cohort, which pays the fee, is often aligned with the dominant market direction.

These funding fees help balance the spot and futures markets by encouraging parity between long and short positions.

The steady support from both markets suggests the potential for a continued rally.

However, AMBCrypto’s analysis also points to certain challenges that could slow this momentum.

Liquidity zones signal downside risk

Despite bullish sentiment gaining traction, market data highlights liquidity clusters below the current price as a potential threat.

These clusters often act as magnet zones, where prices are likely to MOVE to fill unmet orders. While they can serve as support levels, their positioning below the current price increases the likelihood of a downward move.

Source: CoinGlass

Despite momentum, SPX faces a technical catch. CoinGlass heatmaps reveal dense Liquidity Zones between $1.45 and $1.51.

These unfilled orders may act as magnets, pulling prices back to fill gaps before further continuation.

If SPX slides into this pocket, it could trigger cascading liquidations, especially given the stacked leverage in current longs.