Last week I entered a 50% long position in the single-levered Short S&P 500 ProShares ETF (SH) just in case Mr. Market decided it did not like earnings season or the President's agenda.

The daily chart of the SH shows that the price structure has spiked above its November-January resistance line at 51.60 and followed through towards a confrontation with its declining 50-day moving average, now at 52.68, which if hurdled should trigger acceleration to test more important resistance along the August-January down trendline at 54.00.

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