Time to take defensive precautions in case the major equity market ETFs initiate a potential potent countertrend move (profit-taking). If the ProShares Single Levered Short SPY (NYSE: SH) hurdles and sustains above key resistance at 55.90-56.00, we should see follow-through strength that takes out 56.25, which will trigger a substantial countertrend advance to 57.30/60 for starters. However, as long as the SH remains below 55.95, the SH bears are in control.

By Mike Paulenoff

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

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