VIX Futures / Market Update

As mentioned last night, yesterday the European markets were torn to shreds hitting multi month-almost year (multi) lows in some cases, but there was no flight to safety yesterday as the Swiss 2 year yields hit 22 month highs, Yields move opposite bond prices. I found that very interesting.

VXX / UVXY and XIV are short term VIX Futures and they also show another kind of flight to safety trade.

VXX is the VIX short term Futures, if they are moving up, then traders are bidding up safety or rather protection, if they look to be coming down, traders are moving more to a risk on posture (for a market bounce).

UVXY is the leveraged version of VXX, both move opposite the market.

XIV is the inverse of XVV, it moves with the market.

VXX 1 min is in line intraday, no positive or negative, just nearly perfectly in line, treading water more or less very much like the market.

UVXY 2 min the 2 min signal hasn't seen any kind of strength at all from the 1 min and is still leading negative, this suggests VXX / UVXY move down near term and the market moves up.

UVXY 3 min shows the same, the VIX futures aren't looking good.

VXX 5 min is a very strong near term signal, bad for VXX and UVXY, but good for the market. I do wonder if it makes a move toward yesterday's close before the end of the day, that would send the market on a dip toward its close yesterday, then a stronger move down in volatility and up for the market as you see following the longer timeframes from 1-10 min. reflecting

UVXY 10 min is a strong timeframe and makes the trend pretty clear.

This is the inverse of all the charts above, XIV, if you wanted to be short the VIX futures or short VXX, you'd buy XIV long which is similar to buying SPY long as far as market direction.

XIV 1 min again the 1 min is almost perfectly in line just like today was a book holder for the market. There's no deterioration, just an almost perfectly flat 3c/price trend which fits the market's rangebound trend today.

XIV 5 min is clearly confirming the negative charts above in VXX/UVXY.

XIV 10 min and just as they were 10 min leading negative, this is 10 min leading positive, this is CONFIRMATION and all in all, is a good signal for market upside