By Mike Paulenoff, www.MPTrader.com
The 4-hour chart of the ProShares UltraShort SPY (AMEX: SDS) is a very illuminating graphic. The SDS is near two very important "swing" targets: 1) the light green line shows the equidistant uplegs of 23 points off of the 1/06 low, and after the pullback to the Feb 9th of 71.85, which projects a target of 94.90-95.20; and 2) the light blue lines show the measured upmove off of the Double Bottom formation, which projects a target of 96.00/30 from the "neckline" breakout level (84.00/25). So far, today's high is 94.82, which is very close to precisely satisfying the optimal "swing" target zone. Finally, let's also notice that today's high is right in the middle of two important Fibonacci recovery targets of 38% (91.00) and 50% (99.20). In other words, there are multiple reasons for the SDS to find a near-term peak right around 95.00/50 prior to the emergence of serious profit-taking.