The SDS has hit a projected price low of 24.78. Today SDS has so far traded to a low of 24.74 showing some support.
Earlier in the projections the 25.35 low was a called low, this low held for 7 upside days and broke resistance on the 17th day of trading.
It is possible that the projections for 24.79 to 24.27 could produce some sideways trading for the markets before they make another push higher.
The MACD on a 30 minute chart as well as an hourly chart has held up to a possible divergence of a wave 5 to the 25.35 price low as wave 3. This divergence could continue and still produce lower prices as smaller and smaller time frames resolve themselves to a long term turning point. If a larger time frames wave 3 MACD low is breached it means much lower prices for SDS.
Since a lower low in price was made in SDS today (a new 52 week low) and divergence was maintained, a new price projection can be made using the prior high as a wave 4 high.
Wave 5 will have 5 waves and be projected using the 27.66 price high on 11/16/10 to the price low of 26.38 on 11/18/10. Using this wave 1 magnitude a price target for the end of the larger wave cycle could be 23.60. A 30 minute chart below shows this price motion projected.
