The VXN right now is priming up for a small jump. The projected jump should be within the next 2 days. Maybe Thursday. That said, if it cannot retake that support above, then the projected jump may be delayed until next week. It's why I have multiple support lines. The VXN acts as my "hourglass" of how long do I have before I exit my long positions.
High liquidity is what's holding the VXN down. Am I expecting a big jump? Not really. The VXN would need a giant catalyst to get a bigger volatility jump and fight through the liquidity. Bears usually look for a resistance on the NQ. Instead, if they want a pullback, they can find the NQ's "resistance" in the VXN or when it jumps from support.
High liquidity is what's holding the VXN down. Am I expecting a big jump? Not really. The VXN would need a giant catalyst to get a bigger volatility jump and fight through the liquidity. Bears usually look for a resistance on the NQ. Instead, if they want a pullback, they can find the NQ's "resistance" in the VXN or when it jumps from support.
Comment:
Interesting. It seems the VXN is finding a support below. I will have to update this chart again.