I am not sure what to make of the whipsaw action in the ProShares UltraShort Inverted SPY ETF (AMEX: SDS) since Friday morning's surge that tested the Jan-Feb resistance line at 64.20. However, technically, that test failed! Now we find the price structure probing the vicinity of its opposite number: its Jan-Feb support line, now at 60.60, which must contain any forthcoming weakness to avert a potential downside acceleration (that represents a powerful advance in the major equity market ETFs). If the bears were in the drivers seat last Friday morning, they now find themselves on the defensive.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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