UltraShort Financials Holding Up Well

I am surprised by the action in the UltraShort Financials ProShares (NYSE: SKF). Why? I was mentally prepared for the SKF to open higher, make a new high for the upmove off of Friday morning's new bear market low- and then retrace a larger percentage of the initial upleg (16.68-18.59). The actual price action was not all that dissimilar from my expectations: a marginal new higha t 18.59 followed by a plunge to 17.69. What surprises me is the subsequent rally that appears headed for another test of the 18.50/60 area. After all, tomorrow morning (pre-market), Goldman Sachs (GS) releases earnings, which everyone expects to show blow-out (positive) numbers. Shouldn't such an eventuality scare the shorts in the banks (trigger a sustained decline in the ultrashort SKF)? So far, the SKF is holding up extremely well, which leads me to a preliminary conclusion that the earlier weakness today represented a completed correction of Friday's advance-- ahead of a new upleg that is approaching in the upcoming hours-- regardless of the reaction to GS earnings.

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