Volatility Indicators

Yesterday afternoon I posted the 3C signals for the volatility ETFs, UVXY, VXX and XIV, all confirming short term divergences pointing to the market moving up in the near term (as in today).

There was a small change in the signals after I posted them near the close and then when Futures closed for trade in after-hours and re-opened shortly after, they had gapped down.

In any case, the volatility indicators seem to be back on track from yesterday's post. The only thing that I'm thinking about as far as short term trade goes is the weekly option expiration today, more and more we are seeing very dull Fridays as it seems they are even putting a lot of energy in to pinning the weekly options lately.

Here are the updates-

 VXX, moves opposite the market with a 5 min 50-bar m.a. which are closely watched by intraday traders.

 Yesterday's 1 min negative divergence in VXX (suggesting it moves down and the market up), but there was a small positive right in to the close (remember this when you see the ES futures for last night after the close below).

 VXX 3 min seems to be moving back on the negative course which should be supportive of the market, these worked on F_O_M_C_ Wednesday 3 of 3 times, even before the policy announcement.

 UVXY is the same as VXX, just leveraged so the same idea, it moves down, the market up. Again a 5-min 50 bar moving average.


 The 1 min chart yesterday was negative with a small positive in to the close (again remember this positive when looking at ES futures below).

 UVXY 3 min is still leading negative.


 XIV is the mirror opposite of VXX xo it tends to move with the market, it had a positive divergence in yesterday's post, after the post it put in a small negative, but it seems to be moving back in line.

 XIV 3 min is still leading positive.

 XIV 5 min-50 bar m.a.

 At the red arrow is the 4 p.m. market close, ES closed at 5:15 and gapped down when it re-opened at 6 pm, the white arrow is midnight EDT.


ES continued, midnight, then at the green arrow the European open and red the US open.