Basic materials names are getting clobbered, as evidenced by the vertical thrust of the ProShares UltraShort Basic Materials ETF (SMN), whose major inverse holdings include Monsanto (MON), DuPont (DD), FCX, and others. The ETF is now assaulting its declining 200 DMA at 37.80. Today's close will be very important for the SMN. Above 38.00, and let's expect upside continuation to 44.25/50 next.



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.