Keep your eyes on the volatility of the VXX.
The VIX remains at elevated levels however numerous downside targets in the form of gaps remain unfilled at 21.97, 17.62, and 16.26. Again if the VXX breaks down and fills some of the gaps below this would certainly be supportive for a broader market rally.
Note how the ATR on the VXX is showing a downtrending line.
The VXX is consolidating here, and a break out of this triangle consolidation will give us some clear direction.
If the triangle consolidation pattern breaks to the upside, expect to see the 26.89 and 28.62 gaps filled.
The bullish case for the VXX remains that if the ~189 level on the SPY doesn't hold, then we have a high probability of testing the unfilled gap @ 33.31.
Note how the ATR on the VXX is showing a downtrending line.
The VXX is consolidating here, and a break out of this triangle consolidation will give us some clear direction.
If the triangle consolidation pattern breaks to the upside, expect to see the 26.89 and 28.62 gaps filled.
The bullish case for the VXX remains that if the ~189 level on the SPY doesn't hold, then we have a high probability of testing the unfilled gap @ 33.31.
