VXX Hitting All Time Lows

The VXX is similar to the VIX, it's a short term volatility index and extremes in these indicators usually produce inverse reactions in the market.

While my opinion of the market's near term action has been for the market to recoup some of the Monday gap down, and perhaps some, the big picture is getting uglier.

 VXX making all time lows

 The VXX in green vs the S&P-500 in red, you can see the inverse relationship and that we've never seen a low like this before.

3C actually worked well on the VIX showing a divergence that caused the market to fall in April of 2010, this divergence is even stronger then the 2010 divergence that saw the market fall approximately 16%.