Volatility

Looking quickly at the short term volatility, t seems to be in line with the short term market expectations of a bounce for a day, maybe two, but longer term which is really right on top of us, Volatility looks set to explode and probably does so later or mid next week.

 Here's the VIX daily chart with my custom buy / sell indicator, you can see the last 4 signals have been right on-I still don't have a name for the DeMark inspired indicator.

Since the buy signal, everything we expected in the daily VIX has happened. As volatility went from huge to a squeeze indicating a highly directional move was coming (up IMHO) I said, "Expect the VIX to loiter in this area for a while", it has done that, the last candle yesterday looked a little bearish short term and today we are seeing that, but I expect this to go through the roof and still hold a long VXX position and UVXY I believe.

 The daily positive divergence in the VIX is the largest since they changed the construction in 2003.

 The long term, important 2 hour chart for the VXX (trades like the VIX directionally) was in line on the way down, 3C confirming the downside, now it is leading positive, this also indicated a large move up coming.

 This is the 5 min chart, it is in line right now, no indications of any divergence.

 The 1 min shows an intraday negative from late yesterday at the market's bottom and mostly in line since.

I don't think there's any heavy distribution here for a reason, but there's also no accumulation which makes sense with our expectations for early next week.

 Looking at XIV which trades opposite the VIX/VXX/UVXY, there's a positive divergence going in to today, that fits with market action today.

Again there are no significant near term divergences here, but

Like the positives in VXX and VIX, this has a deep leading negative 60 min which confirms the daily VIX and the 2 hour VXX, it says volatility's big picture is going to explode, I think we are probably within several days to a week max from that happening.