Thursday, July 15, 2010

VXX update

Look how nicely the shorter term trend models for the VXX picked up on this decline, from late Wednesday into trading on Thursday:

60 minute

240 minute

The extent of the decline may very well rest on the Daily chart:


The double bottom on the Daily chart at about 25 on the VXX looks to be a key level for the markets going forward.  If 25 holds, it could become a catalyst for further strength in the VXX, which would not bode well for further market rally.  The bear case is alive and the next few weeks should reveal all.


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