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Since the election, all major indexes have turned sharply downward on the back of unresolved "fiscal cliff" issues. The S&P 500 and the Dow Jones Industrial Average are now approaching areas of significant support, leaving many investors on edge.

The S&P 500 is trading near support around 1,300. It was a fall through this support level that ignited the further crash in October, 2008. Since that crash, the S&P 500 managed to climb back to this significant 1,300 level in 2011 and was finally able to rise fully above this level throughout 2012, using it as support in May. Currently, as mentioned, the average is facing this support level once again, as it did in 2008.

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Similar to the S&P 500, the DJIA fell through support around the 12,000 to 12,500 level in 2008, climbed back up to this level in 2011, broke above it throughout 2012, using it as support in May, and is now facing another fall through this significant level.

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Needless to say, I am very aware of these apparent levels of support and their relationship to the "fiscal cliff" fears. In my opinion, these levels of support speak volumes with regard to investor confidence and, if these support levels are broken, we could see a sharp fall in our markets, perhaps like we did in 2008.

I, like many, have been moving in to cash for safety since the election and if the above-mentioned support levels are broken, which would likely be a result of unresolved "fiscal cliff" fears, I plan to move into inverse exchange traded funds (ETF).

Inverse ETFs move inversely to the index of which they track and have, historically, offered me wonderful short term trading opportunities in falling markets. With relation to the S&P 500 and DJIA, ProShares Short S&P 500 (SH) and Short Dow 30 Proshares (DOG) are two of my most commonly traded inverse ETFs when betting against the overall market. As the "short" in their names imply, ProShares Short S&P 500 and Short Dow 30 Proshares move inversely to the S&P 500 index and the DJIA, respectively.

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These inverse ETFs, though not as reliable as the indexes that they track, can also be used to help spot significant support and resistance levels. As an example, both ProShares Short S&P 500 and Short Dow 30 Proshares broke above apparent resistance today, November 14th, 2012. This, naturally, goes hand in hand with the support discussion of the S&P 500 and DJIA earlier in this article, which mentioned that the indexes themselves are also approaching a significant crossroad.

To conclude, I will be monitoring the trading patterns of both the S&P 500 and DJIA very closely in the coming weeks and, if the above-mentioned support levels appear to be broken, I will look to inverse ETFs such as ProShares Short S&P 500 and Short Dow 30 Proshares.

Additionally, here is a further list of inverse ETFs, sorted by the index in which they track (this list, in its entirety, can also be downloaded here):

Alerian MLP Infrastructure Total Return Index

MLPS

E-TRACS 1xMonthly Short Alerian MLP Infrastructure Total Return ETN

Bank of New York Mellon BRIC Select ADR Index

BRIS

Direxion Daily BRIC Bear 2X Shares

Bank of New York Mellon China Select ADR Index

YANG

Direxion Daily China Bear 3X ETF

DAXglobal Agribusiness Index

COWS

Daily Agribusiness Bear 3x Shares

DAXglobal Russia Index

RUSS

Daily Russia Bear 3x Shares

Dow Jones Industrial Average

SDOW

ProShares UltraPro Short Dow 30 Fund

Dow Jones Industrial Average Index

DOG

Short Dow 30 Proshares

Dow Jones Industrial Average Index

DXD

ProShares UltraShort Dow 30

Dow Jones U.S. Basic Materials Index

SBM

ProShares Short Basic Materials

Dow Jones U.S. Basic Materials Index

SMN

ProShares UltraShort Basic Materials

Dow Jones U.S. Consumer Goods Index

SZK

ProShares UltraShort Consumer Goods

Dow Jones U.S. Consumer Services Index

SCC

ProShares UltraShort Consumer Services

Dow Jones U.S. Financials Index

SEF

ProShares Short Financials

Dow Jones U.S. Financials Index

SKF

ProShares UltraShort Financials

Dow Jones U.S. Health Care Index

RXD

ProShares UltraShort Health Care

Dow Jones U.S. Industrials Index

SIJ

ProShares UltraShort Industrials

Dow Jones U.S. Oil & Gas Index

DDG

Short Oil and Gas Proshares

Dow Jones U.S. Oil & Gas Index

DUG

ProShares UltraShort Oil & Gas

Dow Jones U.S. Select Telecommunications Index

TLL

ProShares UltraShort Telecommunications

Dow Jones U.S. Semiconductors Index

SSG

ProShares UltraShort Semiconductors

Dow Jones U.S. Technology Index

REW

ProShares UltraShort Technology

Dow Jones U.S. Utilities Index

SDP

ProShares UltraShort Utilites

FTSE/Xinhua China 25 Index

FXP

ProShares UltraShort FTSE China 25

FTSE/Xinhua China 25 Index

YXI

ProShares Short FTSE China 25

Health Care Select Sector Index

SICK

Daily Healthcare Bear 3X Shares

Indus India Index

INDZ

Direxion Daily India Bear 2X Shares

ISE-REVERE Natural Gas Index

GASX

Direxion Daily Natural Gas Related Bear 2x ETF

KBW Regional Banking Index

KRS

ProShares Short KBW Regional Banking

Materials Select Sector Index

MATS

Daily Basic Materials Bear 3X Shares

MSCI Brazil Index

BZQ

ProShares UltraShort MSCI Brazil

MSCI EAFE Index

DPK

Developed Markets Bear 3x Shares

MSCI EAFE Index

EFU

ProShares UltraShort MSCI EAFE

MSCI EAFE Index

EFZ

Short MSCI EAFE Proshares

MSCI EAFE Index

MFSA

iPath Short Enhanced MSCI EAFE Index ETN

MSCI Emerging Markets Index

EDZ

Emerging Markets Bear 3x Shares

MSCI Emerging Markets Index

EEV

ProShares UltraShort MSCI Emerging Markets

MSCI Emerging Markets Index

EMSA

iPath Short Enhanced MSCI Emerging Markets Index ETN

MSCI Emerging Markets Index

EUM

Short MSCI Emerging Markets Proshares

MSCI Europe Index

EPV

ProShares UltraShort MSCI Europe

MSCI Japan Index

EWV

ProShares UltraShort MSCI Japan

MSCI Mexico Investable Market Index

SMK

ProShares UltraShort MSCI Mexico Investable Market

MSCI Pacific ex-Japan Index

JPX

ProShares UltraShort MSCI Pacific ex-Jpn

MSCI US Broad Market Index

TOTS

Daily Total Market Bear 1X Shares

n/a

HDGE

AdvisorShares Active Bear ETF

NASDAQ Biotechnology Index

BIS

ProShares UltraShort Nasdaq Biotechnology

NASDAQ-100 Index

PSQ

Short QQQ Proshares

NASDAQ-100 Index

QID

ProShares UltraShort QQQ

NASDAQ-100 Index

SQQQ

ProShares UltraPro Short QQQ Fund

NYSE Arca Gold Miners Index

DUST

Direxion Daily Gold Miners Bear 2x Shares

PHLX Semiconductor Index

SOXS

Direxion Daily Semiconductor Bear 3X Shares

Russell 1000 Energy Index

ERY

Daily Energy Bear 3x Shares

Russell 1000 Financial Services Index

FAZ

Direxion Financial Bear 3X Shares

Russell 1000 Growth Index

SFK

ProShares UltraShort Russell 1000 Growth

Russell 1000 Index

BGZ

Direxion Large Cap Bear 3X Shares

Russell 1000 Index

ROSA

iPath Short Extended Russell 1000 TR Index ETN

Russell 1000 Retail Index

RETS

Direxion Daily Retail Bear 2x Shares

Russell 1000 Technology Index

TYP

Direxion Daily Technology Bear 3X Shares

Russell 1000 Value Index

SJF

ProShares UltraShort Russell 1000 Value

Russell 2000 Growth Index

SKK

ProShares UltraShort Russell 2000 Growth

Russell 2000 Index

RTSA

iPath Short Extended Russell 2000 TR Index ETN

Russell 2000 Index

RWM

Short Russell 2000 Proshares

Russell 2000 Index

SRTY

ProShares UltraPro Short Russell2000 Fund

Russell 2000 Index

TWM

ProShares UltraShort Russell 2000

Russell 2000 Index

TZA

Direxion Small Cap Bear 3X Shares 2013 Russell 2000

Russell 2000 Value Index

SJH

ProShares UltraShort Russell 2000 Value

Russell 3000 Index

TWQ

ProShares UltraShort Russell 3000

Russell MidCap Growth Index

SDK

ProShares UltraShort Russell MidCap Growth

Russell Midcap Index

MWN

Direxion Daily Mid Cap Bear 3x Shares

Russell MidCap Value Index

SJL

UltraShort Russell Mid Cap Value Proshares

S&P 500 Bull/TBond Bear Index

FSA

FactorShares 2X: TBond Bull/S&P500 Bear

S&P 500 Index

RSW

Rydex Inverse 2x S&P 500 ETF

S&P 500 Index

SDS

ProShares UltraShort S&P 500

S&P 500 Index

SFSA

iPath Short Extended S&P 500 TR Index ETN

S&P 500 Index

SH

Short S&P 500 Proshares

S&P 500 Index

SPXU

ProShares UltraPro Short S&P 500

S&P 500 Total Return Index

BXDB

Barclays Short B Leveraged Inverse S&P 500 Total Return Index

S&P 500 Total Return Index

BXDC

Barclays Short C Leveraged Inverse S&P 500 Total Return Index

S&P Latin America 40 Index

LHB

Direxion Daily Latin America Bear 3x Shares

S&P MidCap 400 Index

MYY

Short MidCap 400 Proshares

S&P MidCap 400 Index

MZZ

ProShares UltraShort MidCap400

S&P MidCap 400 Index

SMDD

ProShares UltraPro Short Mid Cap 400 Fund

S&P SmallCap 600 Index

SBB

Short Small Cap 600 Proshares

S&P SmallCap 600 Index

SDD

ProShares UltraShort SmallCap 600

Source: Need A Hedge Against Falling Markets?

Additional disclosure: Inverse ETFs are generally suggested as short term investments only.