VXX - SPY Still on Track!
Looking at the VXX chart here, it lines up well with the previously posted charts about the Jan 18 turn date. The Spy has dropped as the VXX broke up out of the the long down trending channel since Dec 24. The recent turn up in VXX as shown here is a great "contrary" indicator to manage the SPY trades.
The recent pullback action in VXX may complete a Butterfly Pattern (as shown here in blue). This target also lines up well with a 61.8% retracement target in the larger Bat Pattern (shown in pink).
Although this chart is zoomed in as we look down for the next turning point marking wave 2, we can expect the SPY to move in the opposite direction and try one more time at the recent highs set back on Jan 18, but it will probably fail and then begin the long grinding 3rd wave down.
The VXX chart shown here, will of course begin it's 3rd wave up and meet initial resistance at the pink dashed line. Then expect a period of consolidation as the pattern begins to pack and build some energy. After that we can expect The Bat Pattern target to be reached way back up near the 50.20 zone!
This forecast is voided if the VXX drops lower than the low set on Jan 18. Until then I'm long on VXX :)
The recent pullback action in VXX may complete a Butterfly Pattern (as shown here in blue). This target also lines up well with a 61.8% retracement target in the larger Bat Pattern (shown in pink).
Although this chart is zoomed in as we look down for the next turning point marking wave 2, we can expect the SPY to move in the opposite direction and try one more time at the recent highs set back on Jan 18, but it will probably fail and then begin the long grinding 3rd wave down.
The VXX chart shown here, will of course begin it's 3rd wave up and meet initial resistance at the pink dashed line. Then expect a period of consolidation as the pattern begins to pack and build some energy. After that we can expect The Bat Pattern target to be reached way back up near the 50.20 zone!
This forecast is voided if the VXX drops lower than the low set on Jan 18. Until then I'm long on VXX :)