Market Update for Saturday, June 25, 2011

The markets are on a downtrend and no confirmation of a turn-around has been made yet. The Vix however, moved higher on Friday and the Put/Call ratio closed above 2, signaling that a bottom is near.

It looks to me that the market may find support again at around its 200 SMA (green line below) and it could make a double-bottom like it did at the beginning of December 2010 (shaded circle on the graph below).

As for my trades, I sold my UPRO holdings at 74.65, a 3% loss, a net loss of 0.1% so far. I am planning on entering UPRO again when the market gives a bull signal.
A key level to watch is the low made on March 16 at around 1249.