A Lot of Movement In VXX/VIX Futures Today

As I have been thumbing through watchlists (I believe as mentioned already), it's the leveraged ETFs that are showing a lot more excitement than the averages or underlying assets and this is often the case, the leveraged products will get in or get out first.

Although the VXX / VIX Futures have been giving consistently positive signals on every move lower (again the definition on a divergence) as shown in an earlier update, there's something about today that I'd probably be looking at something like VXX calls if there were better confirmation in the averages and everything that isn't leveraged wasn't so flat today.

In any case, I'm not quite sure what to make of this, if VXX is reaching the point of saturation as far as the amount accumulated or if tomorrow we should expect a move down in the market (I'm not saying a USD/JPY break below $102, but just in general a move down as VIX would typically move up). The point is, if a few more things were confirming, I think I'd be looking at putting out a Trade Idea.

 Daily spot VIX and support broken yesterday, today hanging around the same area, no real VIX slam as we have seen recently.

 Intraday there's an ascending triangle pattern, not a true ascending triangle because of the preceding trend, but there's certainly a lot of action in it intraday that is picking up.

 The same is seen out on the 5 min charts, as shown earlier the trend here is stunning.

This is the kind of VXX / UVXY flying divergence I look for.

 We are seeing it in VIX futures as well such as the 5 min

15 min (unfortunately the charts here don't have enough history to show you the trend).


This is very interesting action, I'm kind of thinking I need to be paying very close attention to the averages and their signals during the last hour today.