The UltraShort Financials ProShares (SKF) is lower on the session, but has inflicted no damage to the enclosed chart pattern. Right now, the weight of near-term technical evidence argues that each upleg off of every April pivot low exhibits bullish form, while each bout of weakness exhibits corrective form. If my perceptions are correct, then the SKF is building a powerful base formation that sometime, sooner or later, will break out to the upside above 18.55/65.

 

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