UVXY Charts

 One of the least things we often see before a reversal is a head fake move below at an obvious level that technical traders will cue in on, here UVXY support is broken this morning, being technical traders still use EXACT levels for support and resistance rather than understand the emotions that create support and resistance creates zones, not EXACT levels, they tend to line up their orders at EXACT levels such as support broken today as I will show you. Wall Street doesn't even have to guess at this because there are enough traders willing to show Wall Street what their plans are by placing such orders with their brokers in advance so it's all right there on the screen for everyone and anyone who cares to look.

 Note the volume spike on the EXACT break below support, this is because a lot of orders were triggered, this also gives Wall Street a chance to accumulate in large quantity because there's so much supply (volume) and at even better prices. Who wouldn't want to buy as cheap as they can, especially when they know where that area is in advance?

 The 1 min chart is really moving today at a strong leading positive divergence that is through the entire gap, note that the distribution wasn't that strong, it looks like just enough to help UVXY lower and make a quick buck on the trade, but it doesn't look at all like FEAR by smart money trying to get out of the ETF at any cost.

 The 2 min chart is also flying today, the flat range itself looks like accumulation without even seeing 3C.

 The 2 min trend gives a whole new perspective as it is strongly leading positive, it has had plenty of time to confirm the gap lower, it hasn't.

 Migration to the 3 min chart and moving to the 5 min as well.

This is the strategic outlook on the 30 min chart where UVXY wasn't only positive at the last reaction low, but is even more positive now at today's low.

The question for options as they come with time decay has been the tactical outlook of the best entry.