Volatility is Confirming

Yesterday as another hint of weakness in the market just below the surface, we saw positive divergences in VXX and UVXY which trade opposite the market direction and XIV which had negative divergences and trades with the market, those are playing out right now and the divergences that didn't go too far beyond 5 min charts are now moving through the 10 and 15 min longer charts so it appears they have good confirmation.

We are also seeing early movement in some of the longer charts beyond the 5 min chart (where we were stuck yesterday) and now seeing negative divergences in the averages building on the 10 and 15 min charts and this early in the day.

I rarely trust big moves early, they usually snap back at some point and then may continue later in the day, the only exception is on a real collapse which we don't see too often.

In any case, the deterioration expected to be seen today is already building, the averages confirm, Volatility ETFs confirm, the TICK confirms.

I'll be keeping an eye on the possibility of an early bounce intraday as well as position/trade opportunities.