VXX / UVXY (Short Term VIX Futures)

If there's a bid under VIX futures, then we'll see it first as a positive divergence in VXX or the leveraged version, UVXY, the bid in VIX futures is a move to protection, not quite the same as a "Safe haven trade", but similar concept at the same time, when the market is expected to see some downside which I warned of last night.

First the P/L of UVXY short (because XIV long wouldn't have the leverage)

At the $72.96 fill, the P/L was for a gain of +8.9%

 VXX and UVXY are essentially the same except UVXY is a leveraged ETF. VXX 1 min is showing signs of accumulation, it is even showing signs of what is either a purposeful ahead fake move below the yellow trendline or that may have just been the market reaction to F_E_D speak today, either way both areas saw positive activity.

UVXY 1 min is direct confirmation of the positive activity as price broke under the yellow line, head fake or just a move in the market intraday, the results are the same.

VXX 2 min is seeing migration, I'd think that a little more of a "process" would occur before an upside VXX reversal and a downside market reversal as mentioned last night. I still don't see anything so far that changes last night's analysis of the downside move being anything more than noise and the move to the upside continuing after the correction is complete.

 VXX 3 min shows visually what I just said above,

" I still don't see anything so far that changes last night's analysis of the downside move (*in the broader stock market) being anything more than noise and the move to the upside continuing after the correction is complete."

The negative tone of the VXX 3 min chart is visual confirmation of that statement,

UVXY 5 min relative positive, still I'd think there would be more of a lateral process, but if this is truly just a short downside market correction, then there's really no need for much of a reversal process.

UVXY 10 min gives us a picture perfect representation of a leading negative divergence. Note price is at nearly the same level at "1" and "2", however note 3C's position at "1" and then note its position at #2, it is not just lower (which could be a relative divergence, not as strong), but it is leading below price significantly, this is the strongest divergence (leading). Beyond 1 & 2 3C is even leading the UVXY lows.

This suggests that there's still some more UVXY downside after a correction which would mean there's more market upside as I have expected.

A long UVXY or VXX position could be considered here, I may, I probably won't consider options, it depends on whether I  think I have time, whether it will distract me from the bigger picture, etc. However your position may be different, you may have plenty of time and want to make a few extra points.

 I wanted to show you this, intraday form 1-3 minutes a lot has happened today and continues, so my advice in reading 3C with this situation is to move to a longer term chart until a trend becomes evident, at the 5 min SPY chart a trend is becoming evident, from upside confirmation to the negative divegrence I spoke of last night. ***This also goes to the issue of confirming signals in VXX and UVXY as they trade opposite the SPY

SPY 5 min