The big picture of the UltraShort SPY (AMEX: SDS) shows Thursday's counter-trend reversal, followed by Friday's dip, followed by today's upside continuation that has hurdled Thursday's reversal high. So far, the price action coupled with the rounded bottom pattern carved out by the RSI momentum gauge suggests strongly that a significant near-term (and possibly intermediate-term) low has been established in the SDS (a high in the major equity market ETFs). My next upside target in the SDS is 52.00.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.