My optimal pullback target zone for the PowerShare DB Double Short Oil ETN (DTO) is 82.00-79.00, which has been met today. However, so far the inability of the DTO to turn up with sustainability and leave little doubt that the correction off of the July 13 high at 99.50 is complete is bothersome, and suggests perhaps that more corrective weakness is forthcoming ahead of my anticipation of a powerful upside pivot reversal. Let’s notice that there is an unfilled gap from July 2 between 77.70 and 76.15, which might have to be satisfied before the DTO reverses direction.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.