UltraShort S&P 500 ProShares (SDS) — This Exchange-Traded Fund (ETF) seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the S&P 500 Index (SPX).

The fund normally invests 80% of assets in financial instruments with economic characteristics that should be inverse to those of the index.

The Trade of the Day has regularly reviewed the SDS, pointing to the number of buying opportunities over the course of the bear market. Now, with the possibility of a reversal in stocks following the big rally from the early-March lows, there is the opportunity for a trade.

SDS has pulled back to its major support zone at $69 to $73. A rally to $80 is probable and to $85 likely if the current market rally fails from Q1 earnings falling short of expectations.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.