With about 20 minutes remaining in todayââ,¬â"¢s session, the QID (ProShares UltraShort Fund ââ,¬â€œ 2X the inverse performance of the NDX) is holding up relatively well when compared with prior ââ,¬Å"day-after-rallyââ,¬Â� efforts, which have had a habit of failing miserably during the past three months. My intraday work argues that the pattern carved out today between 57.80/10 area represents a bull flag that should resolve itself to the upside towards the 59 next micro target zone. At this juncture, only a failure to rally followed by a decline below 56.50/40 will severely compromise what looks like the initial rally phase of a developing base formation.

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.