Today the ProShares ETF SDS traded to the prior days low of 24.74 and bounced. In the previous post, it was anticipated that if the wave 3 move was complete after reaching the projected 24.78, that SDS could bounce to a wave 4 then continue lower to a wave 5 target of 23.60.
Since SDS did test the 24.74 low successfully so far, it could be said that a wave 4 is in progress and the markets could correct some while this wave resolves itself.
Projecting a three wave correction higher, from 24.74, price targets of 26.24 and 26.59 are possible for SDS.
The first price is a wave 3 target and the second is a .618 retracement of the move from 27.66.
