If ever there is a textbook creation of a rounded bottom, the multi-month ProShares UltraShort DJIA ETF (DXD) pattern certainly would be on page one of the "bottoms" chapter. All through the summer and the fall, the DXD carved out what appears to be a massive bottom that has taken the form of an inverted head and shoulders. Let's notice that the price structure appears to be about to lift off of the neckline breakout plateau, which should trigger upside targets of 58.50 and then 62.00.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.