S&P 500 forming “W” Bottom ?

Ultra S&P 500 ProShares, (S&P500 2-to-1), 6 month chart

Sso

chart courtesy of FusionIQ

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Watch today’s volume —

As seen in the chart above the 3 heaviest volume days (highlighted by green circles)  in the last two weeks on  SSO (Ultra S&P 500 ProShares) an ETF that seeks daily investment returns that correspond to twice (200%) the daily performance of the S&P 500 Index, were on days the index finished up in price.

This suggests accumulation and could suggest a complex bottoming formation is occurring, particularly
when one looks at the recent extremes in sentiment data.

A minor downtrend line (red line) comes into play near $ 31.90. Above this level would suggest that the SSO’s are indeed forming a “W” low here. Only a high volume break below the 52 Week lows would turn the technical picture decidedly negative again.

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