“From our point of view time wise, we think this correction has further to run, consistent with the past over 10 percent corrections since March 2000,” said Emanuel. “Does it have further to run? That will be much more dependent on whether the data starts turning down in a much more meaningful way, and if there’s no signs of tangible … progress in negotiations with China.”

Other Leveraged S&P 500 ETFs

While equities investors have been rattled by the latest volatility spikes, traders can take advantage of the market oscillations with other leveraged S&P 500 ETFs, such as the Direxion Daily S&P 500 Bull 2X ETF (NYSEArca: SPUU), Direxion Daily S&P500 Bull 3X ETF (NYSEArca: SPXL) for gains and the Direxion Daily S&P 500 Bear 1X ETF (NYSEArca: SPDN) for declines.

“It is entirely possible that looking out over the next three to six moths this correction turns into what you would call a bear market because of the fact that the Fed really didn’t show sufficient sensitivity to the affect of policy tightening on the speed of asset price changes to the downside,” said Julian Emanuel, chief equity and derivatives strategist at BTIG.

SPUU seeks daily investment results equal to 300% of the daily performance of the S&P 500® Index. SPUU invests at least 80% of its net assets in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.

SPDN seeks daily investment results equal to 100% of the inverse of the daily performance of the S&P 500® Index. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short exposure to the index equal to at least 80% of the fund’s net assets (plus borrowing for investment purposes).

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