Monday, January 02, 2017

Volatility (VXX) Is Set For An Ominous Opening

I've been keeping an eye on Volatility ETF (VXX) for some time now divergence has been in place on my long-term MACD indicator. The shorter term signals are starting to change too with a near-term buy going in today. I've also queried a weak declining wedge pattern but I'm not 100% married to this configuration in our current context. Additionally the RSI(14) signal has put in a "long/buy" with a higher low with volumes still looking strong.
The buy signal on the 30 minute chart I think was put in around 23rd of December with the EMA's now bullishly crossing over. Volatility has been in decline for a considerable but my long-term indicators are fairly reliable and crossover's so seldom I think this signal cannot be ignored. In the context of larger events the market has some seriously overbought conditions that need to be worked off.