Second round of selling pressure in VXX down to 24.88 and is bouncing a bit but only time will tell if island reversal bottom stands.I wouldn't want to see 24.77 touched.
farmerisland
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@SamSzulc, damn, that pop sure was short lived. Liquidity and buyers really keeping this down... Even if we don't get a bottom immediately, I still am of the thought VIX is coiling up for a larger move ultimately...
SamSzulc
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@farmerisland, It's hard to say. Seasonally VIX is bullish from yesterday through 10/9, but the last seasonality inflection point in mid July led to new lows.The Dow and RUT both are laggards unless they play catch up which is always a possibility. The SPX traded just past .786 then backed off a little, NDX broke above the .786. The indices seem to all have different trading patterns but with exception to RUT reversed the opening gap which is a lesson to learn, don't trade gaps downs until after the open to see if there's a reversal usually in the first 5 minutes. The one thing we can say is that today's bottoms are important, trading underneath will confirm a top. Other than that there are a couple of pattern possibilities of leading diagonal to ending diagonal. It's possible at some point both the stock indices especially the NDX can move higher at the same time, if that happens then they're on borrowed time. The Nasdaq VIX (VXN) hasn't made new lows on this move up, that's bearish. The Aussie$ that closely correlates both to Nasdaq and SPX looks like it topped yesterday along with a bottom in DXY. There are divergences but it's a mixed bag so not a slam dunk.
SamSzulc
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Testing into the gap right now, hopefully it won't close it otherwise the Island bottom reversal was short lived.
SamSzulc
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After the stock indices made their bottoms right after the open which often means a reversal, the technical picture looks bad with a/d and volume. The VIX after topping at open is starting to pick up steam but for we'll need to see another high over the open to confirm the initial sign of a trend reversal. 3 day Island reversal bottom in VXX, we'll see if that holds.