Early Volatility is Looking Healthy

Remember volatility ETFs like VXX and UVXY move inversely to the market so a positive divergence in either suggest they will see upside and the market downside.

Again, it's still early, but given that this market could turn on a dime so to speak, we want to watch everything.

 Over a longer time period we have a relative positive divergence between the 18th and the 2nd/3rd and a leading positive divergence the last day or so.

That doesn't mean volatility can't move lower as the timeframes above are still shorter timeframes, but it does seem like they are progressing in a positive manner (you may recall VXX may be one of the add-to positions I'd be looking at). Today's early 1 min chart shows VXX in a leading positive divergence despite prices being lower, this suggests there's accumulation going on as price moves down, which should help the longer charts put in stronger positive divergences than we have already seen.

It would also mean that it becomes more likely the market is closing in on a top.