So far this morning the high at 91.11 in the UltraShort SPY (SDS) hit the lower side of my original target zone of 91.10 to 91.60. Let's notice that just above current prices -- at 91.90-92.00 -- the SDS will smack into a powerful near-term resistance line from the late October peak, which if hurdled will argue that a new and powerful upleg commenced this morning at 84.25, and is heading for 116.00-118.00.



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.