If you joined me on the short side and you want a possible suggestion for a stop, use the line that I’ve drawn for each chart below. There definitely was some interest in these contra ETF’s when the markets started to slide last week, and now we’re left to try and figure out if it was the start of a larger correction or if Bernanke and his money printing are going to get busy again. Here is one study on Quantifiable Edges that suggests the markets will close higher at some point next week.
All three of these prices were stopped by their respective 200 moving average on these 60 minute charts. If you check out the RSI, it went ballistic and hit levels that they’ve not seen in awhile due to the steep downtrend. If these charts are going to make a stand, now is the time to do so, as once they make new lows the likelihood that last week had any lasting power is all but gone. But currently the pattern is intact for these to break out of the current downtrend they find themselves in. Click on each chart to enlarge: