[UVXY] at interesting juncture.

First off, the broader markets have charts that could begin a short term reversal and then turn around and do one more higher high in order to throw over the top rail of the rising wedges associated with them.  But they could also short stroke that rail.  Nothing is certain right now except that if you find the trade going against you day after day then you need to use stops so you don't get bled out.  Remember, the goal of the market is to fool and screw as many people as possible and nowhere is this more true than at the major turns.

The recent action is clearly 5 waves down from the last peak where it touched the top blue rail around $22.50.  So we have to watch the open on Monday carefully.  If it is a small move up to perhaps $20 which then falls back below the rail then the current wave down was only wave 3 of 5 of a normal motive wave in which case we likely have to see one more small wave down to $18 before getting any meaningful rally.  When that rally comes, the first target will be the level of the prior 4th.  If this occurs with a corrective a-b-c then be wary but if it blows right past then hold on tight.

I think it is notable that the DJIA has now hit a higher high than its Dec high yet UVXY has not yet hit a lower low.  Maybe it will happen or maybe it will be an inclining double bottom.

Having said that, UVXY put in a small but nice double bottom exactly at $19.50 and then set itself up for a gap up 3rd wave on Monday.