SPXU dominated by bears dragging the market lower throughout the day


ProShares UltraPro Short S&P500 (SPXU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

SPXU breaks back below 20-day moving average
SPXU dominated by bears dragging the market lower throughout the day
SPXU closes lower for the 2nd day in a row
SPXU breaks below Monday's low

Overview

Moving lower for the 2nd day in a row, SPXU finished the month -9.58% lower at 11.80 after losing $0.52 (-4.22%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 12.31, ProShares UltraPro confirmed its breakout through the previous session low after trading up to $0.70 below it intraday.

Daily Candlestick Chart (SPXU as at Jun 30, 2020):

Daily technical analysis candlestick chart for ProShares UltraPro Short S&P500 (SPXU) as at Jun 30, 2020

Tuesday's trading range has been $0.77 (6.23%), that's slightly above the last trading month's daily average range of $0.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPXU.

One bearish candlestick pattern matches today's price action, the Black Candle.

The market closed back below the 20-day moving average at 11.91 for the first time since June 23rd. When this moving average was crossed below the last time on May 14th, SPXU lost -1.31% on the following trading day.

Though the ETF is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Selling could accelerate should prices move below the close-by swing low at 11.26 where further sell stops might get triggered. With prices trading close to this year's low at 10.76, downside momentum could speed up should SPXU break out to new lows for the year.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for ProShares UltraPro. Out of 353 times, SPXU closed lower 58.36% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 67.42% with an average market move of -1.49%.


Market Conditions for SPXU as at Jun 30, 2020

Loading Market Conditions for SPXU (ProShares UltraPro Short S&P500)...
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