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Thursday, January 22, 2009 10:15:10 AM
MPtrader by Mike Paulenoff - Jan 21, 2009 - 02:33 PM
Proshares Ultrashort SPY Upleg Near Completion
The Market Oracle
Let's notice that after the Proshares Ultrashort SPY (AMEX: SDS) pulled back (to 82.88) during the first hour of trading, it climbed strongly to an intraday high at 87.11, which happens to be just shy of yest.'s rally peak at 87.65. The fact that the price structure failed to make a new high, and instead has backed away from the highs, suggests strongly that the upleg from the 1/06 low at 64.29 is at or is quickly nearing completion ahead of a meaningful decline.
Two scenarios are most likely: 1) that all of the action from yesterday's high at 87.65 is part of an incomplete bullish coil, which when complete should trigger one more upleg that projects to 88.00/30; or 2) failure to remain within the coil, followed by a break beneath 82.90/85 should trigger downside acceleration towards next target of 78.00.
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction.
George.
Click on "In reply to", to see any past commentary.
Proshares Ultrashort SPY Upleg Near Completion
The Market Oracle
Let's notice that after the Proshares Ultrashort SPY (AMEX: SDS) pulled back (to 82.88) during the first hour of trading, it climbed strongly to an intraday high at 87.11, which happens to be just shy of yest.'s rally peak at 87.65. The fact that the price structure failed to make a new high, and instead has backed away from the highs, suggests strongly that the upleg from the 1/06 low at 64.29 is at or is quickly nearing completion ahead of a meaningful decline.
Two scenarios are most likely: 1) that all of the action from yesterday's high at 87.65 is part of an incomplete bullish coil, which when complete should trigger one more upleg that projects to 88.00/30; or 2) failure to remain within the coil, followed by a break beneath 82.90/85 should trigger downside acceleration towards next target of 78.00.
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction.
George.
Click on "In reply to", to see any past commentary.
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