The UltraShort FTSE/Xinhua China 25 ProShares ETF (AMEX: FXP) appears to have established a near-term pullback low this morning at 76.06, and has pivoted into a new upleg that should continue the May-June advance towards a retest of the June high at 84.00. If 84.00 is hurdled and sustained, it just might unleash a very powerful follow-through that points considerably higher, into the 93.50 area, on the way to 100.00.

At this juncture, only a failure to hold above 77.00 will begin to compromise the developing pattern, while a break below 76.00 will invalidate the work altogether.

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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