My extreme near-term work is starting to give me very preliminary indications that the ProShares UltraShort SPY (SDS) has seen its worst levels of the session and that it is in the process of turning up after the conclusion of the decline from Monday's high at 84.27 into this morning's low at 76.16. Although my micro work leaves open a scenario that calls for one more loop down to 76.00, if the current rebound manages to climb above 78.50/80, I will no longer expect a retest of 76.00. Instead, the SDS will be telling us that a new upleg is in progress that should thrust right to test the January-February resistance line, now at 83.30.



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.