Today was a critical day for VIX and VXX and the decision is postponed.
This update (open for everyone) contains:
– technical analysis of the daily events;
– interpretation of the candles structures on various frames;
– forecast for the next week and longer period of time.
The monthly and weekly TA and candles were discussed in details in the weekly analysis.
Previous VIX weekly analysis:
VIX – left chart
After two bearish candles, VIX expectedly made an attempt to confirm the reversal. However, despite the size, the move was not fully supported by indicators and only marginally confirmed the reversal.
At the end of the day, VIX formed a bullish Engulfing on the 4 hour chart and the frame points upwards.
The trend is healthy bullish and today’s move did not make a dent in it.
VXX – right
Today’s candle did not confirm the bearish Harami Cross of yesterday and it did not negate it either. The odds are close to neutral and a confirmation is needed for either direction. The trend remains strongly bullish and would support a move higher.
The monthly and the weekly odds did not change.
The daily candles of VIX and VXX are pointing in different directions. The daily odds are close to neutral and a confirmation of the short-term direction is needed.
The hourly frames suggest a move higher tomorrow.