Eye on Short SPY (SH)

Time to take defensive precautions in case the major equity market ETFs initiate a potential potent countertrend move (profit-taking). If the ProShares Single Levered Short SPY (NYSE: SH) hurdles and sustains above key resistance at 55.90-56.00, we should see follow-through strength that takes out 56.25, which will trigger a substantial countertrend advance to 57.30/60 for starters. However, as long as the SH remains below 55.95, the SH bears are in control.