Period of Recovery for the Stock Market UltraShort SPY (SDS)
Stock-Markets / Stock Index Trading Jun 05, 2009 - 11:59 AM GMTBy: Mike_Paulenoff
The one salient feature of the enclosed hourly chart of the ProShares UltraShort SPY (NYSE: SDS) is the series of lower highs and lower lows, which represents a powerful downtrend. However, after this morning’s new low at 51.47 and upside reversal to a high of 54.17, I have to consider that “something” ended on the downside and that a period of recovery rally already has started.
If that proves to be the case, then the SDS will NOT break this morning’s low prior to trading higher – above 54.17 to at least 55.37 – and likely on the way to the 57.00 area “to probe serious resistance.” Of course, right now the SDS is consolidating around the mid-point of today’s range – setting up a very important directional move later this afternoon.
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By Mike Paulenoff
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