Why did I bail out of my long ProShares Ultra S&P 500 (SSO) position (+7% in a day and a half)? Largely because the e-mini S&P 500 was bumping up against an important one-week resistance line at 1129.00, which in THIS market could elicit a negative reaction.

That said, so far there has been very little weakness after the initial bump against 1129. Should the e-SPZ hurdle and sustain above the resistance line, then my next optimal upside target zone is 1139-1143.

Conversely, any selling pressure from a failed hurdle of the resistance line MUST hold 1120-1115 thereafter.

 

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