SDS - ProShares Ultra Short S&P 500 might have bottomed

(Click on the picture to enlarge)

As I statede last week it migth be a good time to "leave" the bear-market rally from March. It might even be a good time to play the short-side and ProShares Ultra Short S&P 500 Symbol SDS) could be one way to do that.

As can be seen we can count a wave A ( 3 wave)up from October 2007 to November 2008 and wave B down from November 2008 until now (3 wave), this means that we are looking at a flat or an irregular correction. Eventhough we have broken a bit below the October 2007 low at 47.50 I would still call this a flat correction. What can be expected next? A five wave C rally that will take us all the way back up to the November 2008 top at 133.20 and maybe even slightly above.

Playing the short-side though SDS gives you a leverage of 2:1 to the down-side and makes you money if the market goes down.