This lever of market manipulation was tried yesterday, unsuccessfully, but with TLT flat (intraday distribution), HYG still moving up (intraday distribution also) and VXX just getting slammed...
VXX short term VIX futures just slammed, this is not like a normal VIX slam that ramps the market like we see end of day, VXX is 1 of 3 specific assets in the SPY arbitrage and for it to work, VXX must move down, TLT down and HYG up, or the relative performance has to be in that direction (for example VXX down, TLT flat, but HYG moving up strongly). This has nothing to do with actual accumulation of VXX which I'll be looking for in to lower prices as only 1-3 min charts are needed for a strong buy signal and a head fake move lower can do that, this has to do with actual price.
As of 15 minutes ago, BEFORE the VXX slam, the SPY Arbitrage lever was adding about $.20 cents to the SPY's price, with the VXX slam, it will be adding more as you can see SPY vs VXX...
Obviously the lever and VXX slam was needed as SPY couldn't break out of the A.M. Range until VXX was slammed and SPY Arb increased, that's SPY in green and VXX in red.
I'm pulling up Leading Indicators now, but I'd also be watching for a bullish VXX candlestick on intraday charts, the longer the better and with a spike in volume, that may be VXX's bottom and perhaps the final accumulation area it has needed since the weekend.
More in a moment.
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