Jun 01

Rebound Expected in S&P UltraShort ETF

by Mike Paulenoff, Fri June 1st, 2007

The ProShares UltraShort S&P (AMEX: SDS) plunged to a new low this morning at 50.43, but has since recovered to 50.99, just 3 cents from unchanged on the session. My pattern work argues that the SDS ended the most recent downleg from the 5/24 recovery peak at 52.71, which in and of itself is reason to expect some type of rebound. However, my pattern and oscillator work are "warning" me that perhaps a more important low has been established ahead of a larger, more intense counter-trend recovery -- that projects to the 53 area at a minimum and possibly to the 55 level thereafter.
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!