Isn't this pretty? The S&P 500 index is still holding above the long-term resistance line that begins with the March 2009 low and touches the end of August 2010 bottom, which coincided with the announcement of QE2.

UCO channels

UCO on 5/20 shows three potential channels. Which path will the price follow?

            

5/25 update: It looks like the green channel was the one that fit better, and today there may have been a break to the upside.

Bought ZSL @ 13.63, sold at @ 15.385

On Friday 4/29, SLV looked ready for a correction: three days above the upper channel line, lower high in the RSI(5), MACD very extended, and declining MACD-Hist.

I bought some ZSL, (2x inverse silver ETF) on the close at 13.63, thinking that many who have SLV were just waiting for an excuse to sell it, expecially with the talk of a silver bubble all over the internets.

Turns out this was the weekend when U.S. Special Forces found and killed bin Laden. As was to be expected, any news was sufficient to shake SLV holders into selling it.  On Monday, upon seeing silver future down 6% before market open, I decided to take my profit right away and sold ZSL at 15.385, for a gain of 12.8%.  ZSL ended up even higher for the day, but not before sliding down to 14.01.  I am happy with the low risk choice I made to sell at market open.