Upside Signal for Ultra S&P ProShares
01/30/2009 11:46 am EST
Ultra S&P 500 ProShares (SSO) - This exchange traded fund (ETF) seeks daily results, before fees and expenses, that correspond to twice the daily performance of the S&P 500 Index (SPX).
Like its parent, the S&P 500, the SSO shows a series of bottoms with a false breakdown, or bear trap, on the January 20 close at $20.90.
That close was quickly reversed the next day, and led to a four-day rally and a gap, as prices briefly challenged the 20- and 50-day moving averages.
Yesterday, the gap was closed, so with the stochastic still oversold, look for a rally that could take this ETF up through the moving averages to challenge December's high at $28.
By Sam Collins of OptionsZone.com