ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO) and ProShares UltraShort Lehman 20+ Yr(ETF) (NYSEARCA:TBT) Tell Us to Remain Cautious
Oil and the Market's are diverging today. ProShares Ultra DJ-UBS Crude Oil (NYSEARCA:UCO) is down almost 6% while the stock markets are relatively flat, with the Russell 2000 even showing a solid bid from time to time. The Markets have tested near term resistance levels though, and they are floundering in the upper tier of their midterm channels too after recently testing midterm resistance as well, so the technicals are offering warnings.
If resistance levels hold we are likely to see a decline all the way to support again.
Action in the bond market would suggest that concerns exist out there that are not being represented by today's stock market action as well. Notice the weakness in ProShares UltraShort Lehman 20+ Yr(ETF) (NYSEARCA:TBT).
Stock Traders Daily remains defensive and cautious.