What a day for the cannabis sector. MSOS, the leading U.S. cannabis ETF delivered a strong performance, finishing the session up more than 10%. This wasn’t just a good day; it was a clear display of relative strength compared to nearly every other ETF in the market. While much of the broader market continued to chop around today, MSOS stood out as money rotated aggressively into the space.
Last week I highlighted the powerful combination of conditions setting up beneath the surface, an oversold market, marked by eight consecutive days of lower daily highs, along with a key test of the psychological $3 support level. That type of pressure often creates the fuel for sharp reversals once buyers finally step in. Today’s action confirmed the setup by continuing last week's rally.
After hours, MSOS is trading slightly higher and flirting with the $4 mark, a level that will likely act as the next meaningful hurdle. A push through $4 with volume could open the door for a continuation move.
Looking at the 5-minute chart above on the left, the intraday story becomes even clearer. The ETF saw a steady flow of accumulation throughout the session, with buyers consistently stepping in on dips. The most telling moment came in the final five minutes, a massive 2-million-share volume spike as MSOS closed right on the highs of the day. That kind of aggressive end of day demand often signals big money interest or strong conviction buying.
Given the strength and the way MSOS closed, I would expect some follow-through. Now the key question is whether it can conquer that $4 level as the week unfolds. Let’s see how the rest of the week plays out.
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