$TZA — Time to be bullish on bearish ETFs

TZA, the 3x-leverage bearish ETF for the Russell small-cap index, has escaped its falling wedge.

So?

So a falling wedge is oftentimes one of the most bullish signals for whatever stock, option or ETF that has one in play.

So, with TZA, there’s a good chance it soon rally, maybe as much as a point, which from the mid-four-dollar range would be a significant percentage moved. In fact that rally may have already begun (see the rise on the chart above).

Simply put, it’s about time to bullish on bearish ETFs like TZA, SQQQ, UVXY.

Typically, if a rally from a falling wedge takes place, it is rapid…like less than a week for a fast and furious swing to its profit.

Should be noted the $NYSI, the all-important measure of market breadth, is turning down today (assuming that holds to the close) which would be another sign of a bearish market move to come.

The direction of the $NYSI is my trigger for which side of the market to be trading on.