Eye on SRS - Market Analysis for Jul 1st, 2010

I am looking to re-enter a long model portfolio position in the UltraShort Real Estate ProShares (NYSE: SRS) into weakness, if we get any. Should such a scenario unfold, then the SRS should pull back into the 28.50/00 area in a shallow correction, or into the 27.00 area in a deep correction.

For the time being, the SRS is flirting with its upper channel line in the 29.60/90 area. If the major market equity indices cannot hold the morning's pre-market lows, then it is unlikely that I will get an opportunity to re-enter a long position into weakness -- and will have to decide if I want to chase strength for a thrust above the May-July resistance line, now at 30.50.