Finding The Best Investment Opportunity Right Now [ProShares Short S&P500 (ETF), ProShares UltraShort S&P500 (ETF)]

opportunityGeorge Leong: The bulls are continuing to ride the stock market higher with minimal resistance from the bears. After some weakness earlier in the year, stocks continue to want to edge higher.

We are not seeing the mass market participation we want to see in a rallying stock market, but this divergence is clearly not a big deal for traders.

The first half of 2014 saw mixed trading, but the stock market managed to edge higher. We saw multiple records set by the DOW and S&P 500, with both indices closing higher for the fifth straight month in June. Not bad given that historical records suggest muted action.

On the charts, the sense is that the stock market is aiming higher. The DOW broke 17,000 last week, while the S&P 500 is eyeing 2,000 and looking higher on the charts, based on my technical analysis. The DOW is riding consistently above its 50-day and 200-day moving averages.

Dow Jones Industrial Average Chart

Chart courtesy of www.StockCharts.com

On the plus, small-cap stocks made a strong rally in June as we saw some money flow back into the higher-risk assets, which technically bodes well for the broader stock market. We are also seeing buying return to the technology sector and the high-momentum plays.

But as is always the case after a rally to new heights, many are calling for a stock market correction.

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