On Those Volatility Divergences from Yesterday

Tuesday negative short term divergences in volatility called yesterday's market direction, yesterday the positive divergences in volatility ETFs/ETNs seemed to do a good job calling today's direction. We will keep a close eye on these for short term movement, but it is worth reminding you that the bigger picture, more important volatility readings on longer charts are clearly very positive, which is very negative for the market.

I will say so far it is strange how far the market has moved vs the VIX's movement...

 VIX in green vs the SPY, if I had to guess, after having looked at VXX, I'd say there's some that are using the VIX for purposes other than what it was originally intended today.

 SPY's gap down

VIX's very small gap up.

VXX's gap up