My overall work on the UltraShort Real Estate ProShares (NYSE: SRS) indicates that the upmove from the Jun 21 low at 24.07 to the Jul 6 high at 32.20 completed the initial upleg of a larger, intermediate-term advance. If accurate this means that from in and around the 27.50/00 area, the SRS will pivot to the upside into a new upleg that projects into the 34.50-35.00 target zone.

At this juncture, only continued weakness that violates 26.00 will invalidate the timing of the anticipated next advance.

 

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