A short-term trade is opening up in the index ETFs, and the next few sessions will be crucial. So whether you play the Spyders (SPY) or the more active double and triple or sector ETFs like the ProShares Ultra S&P 500 (SSO) and the ProShares Ultra Short S&P 500 (SDS), a move seems to be brewing, and a trade is about to materialize.
There are two ways to view the recent decline in the stock market. Either this is the continuation of the bear market or the makings of a new bull market.
Let's lay out the case for both scenarios from a technical standpoint. The stock market's biggest percentage rallies were bear market rallies followed by even lower lows. The following widely published chart is very powerful and scary:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV