Just an observation, nothing conclusive yet...
Looks like 2011 chart pattern is repeating... if so, buy VXX when the blue resistance is cleared (for both price and RSI), and gain can be substantial (judging by RSI and Stoch spike in 2011).
I've discussed VIX and VXX before. A base seems to be in. As long as the blue trend line holds, there is no reason not to think this will go higher. Perfect spot to go long. The downside is so minimum.
With VXX fast rising against the resistance, RSI is approaching short term overbought zone, meanwhile, IWM is sitting right on a support line that has been formed since Nov. 2013. If this support line can hold for today, I expect a IWM rebound early next week. Otherwise this line may become new resistance.
Divergence is building up. Target @ 33.5
Based on this pattern triggering on a move over ~21.60 you could expect a measured move to ~22 before hitting resistance. The timing of this breakout seems to be coinciding with market topping action which further strengthens the likelihood of this chart having predictive utility. This chart taken together with today's breakout in Treasuries (TLT) and over 30%...
RSI divergence and bullish wedge suggest a short term breakout is likely for 20%+ gain.
1. I measured the distance off the Ichimoku Cloud, just before markets crashed in 2000 & 2008. We are definitely way too above the cloud support right now. 2. Assessing the data after 1994, the JMA2 moving average is currently in the longest uptrend streak ever, which has been running for 729 days. The uptrend is noted by the white line on the candles, and black...
Despite briefly dipping below 12, based on this chart interpretation the VIX is still poised for a rather large spike this summer. First trigger would be a move over ~14 then a push through major resistance ~19.50 - 20 would probably see a rapid ramp towards the low 30's. This would roughly correlate to a 20-30% correction in the SPX. Watch to see if the VIX can...