SPXL - Feb 11th Tech Analysis on 1hr trend lines - bulltrap?
The SPXL is the S&P triple bull. It could be argued that it provides a magnified view of the S&P as it is leveraged on the bull side with SPXS providing the counterbalanced bear trading instrument. The December and January provides a clear view of the magnificent bull run which was broken on January 30th 2018. The higher highs, higher lows trend was broken without a doubt.
The pullback was to be expected. Support levels at $51.40 were tested during a few trading periods and broken on Feb 2nd 2018 down to $50.84 which gave the bears control.
The trends lines are now established with lower high, lower lows. At times, we are seeing a surge in bull activity although unless the bulls can break the pattern this week, we can expect the bears to continue the savage, but well needed, pullback.
It important to note the on days is significant and the on days indicates that bulls are more timid and undetermined than bears. Unless the bulls on the S&P can return on Monday and Tuesday with conviction, this 1 hour trends charts on the SPXL seems to indicate SPXS might be the trade to consider for February 12th 2018