SPXS Bear 3x ETF Weekly and Daily Charts Falling Wedge Oversold Positive Divergence

SPXS is the triple inverse ETF that runs higher if the SPX sells off. With the huge move in January this has been a painful one. This analysis holds for most of the inverse ETF's, you will see the same chart set up almost across the board with all of them, TZA, TWM, etc....  Price is basing now, which is not of much help if the entries were a lot higher, but, all stocks have to base at some point.  The falling wedges are playing out to their apexes and ready to jump up and out to the upside. The weekly and daily charts show universal positive divergence across all indicators, a powerful signal for upside ahead (which means the broad markets sell off), however, so far it is like waiting for Godot.

The weekly chart exhibits some near term weakness (short red bars) so some near term pain, the bulls turning the screws a little more on the bears, may occur, but as the positive divergence shows, these charts are ominous for the broad markets moving forward. The weekly chart shows an inverted H&S with blue lines; head at 14, neck line at 20 so target at 26.  Then a larger inverted H&S with pink lines, the head at 14, neck at 26 which targets 38-40.  The daily chart shows the sharp collapse to begin the year as the politicians kicked the can down the road for the fiscal cliff. This creates an island from 16.0 and lower. Thus, when price comes back up it may leap from 16 to 16.5, jumping back over the gap, to create an island reversal.  SPXS and the other inverse ETF's receive daily beatings out behind the wood shed, but the battered body is rising from the ashes and will shine as the year moves along. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.