The QIDââ,¬â"¢s (ProShares UltraShort QQQ) are on the verge of testing last Mondayââ,¬â"¢s low at 55.45, which if broken likely will trigger downside follow-through into the 55 area thereafter. Although the pattern off of the July highs, as well as glaring momentum divergences both on an hourly and daily chart basis, suggest that the QID should be chiseling out a bottom in the 55.50-55 area, the fact remains that the stair-step downtrend remains the dominant feature and will not be disrupted unless the QID rallies above 58.25.

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.