Judging from the fact that the UltraShort S&P 500 ProShares ETF (SDS) declined right to 54.01 from Friday's high at 56.87, held, and then turned up for a rally to the 55.70/75 area as we speak, suggests strongly that the "bullish scenario" (for the SDS, bearish for the major equity market ETFs) is unfolding. The big question now is whether or not the SDS has started a new upleg, which if true could mean that prices rocket to new recovery highs that project next to 58.



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.