Stocks sold off during the morning session, but rallied late in the day to close in or near positive territory, and in the top third of the day's range. Total volume was lighter on both exchanges, so there isn't much to talk about in terms of the price and volume action today. The broad-based averages are basically sitting at the highs of a two-week range and should eventually move higher.

We have one new official setup on today's Wagner Daily ETF watchlist.

ProShares UltraShort 20+ Treasury ($TBT) looks to be reversing off an important support level around $60, formed by the prior lows of 2012 and 2013:



The daily chart shows the recent downtrend line breakout and successful test of the same trendline this week. The price action also held the 20-day EMA which is beginning to flatten out.

If the price action can push through the swing high and 50-day MA, then we could potentially see a multi-week bounce into the $68 - $70 level, where there is resistance from the last base that formed back in February.

Since the 50-day MA is in a downtrend, this is a clear counter trend move, so we are looking for the price action to move quickly in our favor:

 

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.