VXX, VIX, TVIX, VIXY, etc all consistently banging against a descending diagonal trend line, meanwhile also printing an inverse head & shoulders pattern. A break above neckline or DTL suggests a massive move higher for volatility, which spells trouble for equities and indices.
As a confirmation to my overall bearish equity view, VXX refuses to sell down below support.
Zooming in, today's bottom is also yesterday's high. Fractal nature of markets.
No position in VXX. I already took profits on the morning's pop. I am short other things like XLF and FB.
I think there will be follow through, but don't want to short the market into...
Bear Call Credit Spread
Selling Vol, Short.
D RSI is very Overbought at 90+
Due to news / trade war / other Volatility is spiking.
Usually Short term run for cover, before things calm down.
32/30 Bear Call with 29 Put for Directional Bias lower.
Looks like VXX is continuing its downtrend as it has run into multiple resistance points and is forming a bear flag. With futures up and a positive reaction to Apple earnings vxx has a poor chance to break out with stoch already overextended and bearish divergence on RSI.