You saw VIX futures earlier and I'll remind you that I have been patiently waiting for 3-4 weeks now to call out a long in VXX, it's just that I know what the signals should look like and part, a big part of why I think there have been some positive divergences in intraday timeframes in the market this week is to pressure VXX down to an area where accumulation can put in the type of divergences I'm looking for.
Today added to timeframes that need it so that's good, but intraday it looks like VXX will come down a bit which is good for our purposes and the market will likely build a bit from here.
*Remember VXX trades opposite the market.
The 5 min already looks good, not where it could be, but for any other asset it would be great, it was the 1-3 min charts that needed work.
This 3 min has added to its divegrence today, this is what we need for a meaningful change/pivot to the downside in the market, not for a 1 or 2% correction but for a new leg lower for the year and then some.
Of course smart money isn't going to chase VXX trying to accumulate higher prices lest they drive it up against their position so it needs to come down.
The intraday 1 min above and 2 min below show that process seeming to take hold as the Q's improve, thus we have confirmation.
VXX is not a buy yet, the market isn't where I'd enter a lot of large core shorts yet (for this cycle), but we are now seeing progress.
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