VIX - daily 'rainbow' (Elder Impulse) chart
A pretty severe decline on what was a pretty dull Monday. No sign of a floor, no sign of any turn upward. We need to see a few blue candles, and at least 1 green candle before we have a decent go-LONG VIX/buy signal.
VIX - the big picture
Today's action was very bizarre. Maybe it was a floor, although that is certainly not yet a classic 'hollow red' reversal candle. Even a move to 22 right now would not confirm a clear break higher. Weekly momentum cycle - at current level, will now take up to 4-6 weeks to go + cycle.
UVXY - another decaying mess
Interest in this VIX instrument remains in a rapidly increasing trend. Can you imagine the volume that will occur on this thing if the market does have a few significant down days in a row?
However, as with all leveraged play things, this is just another easy way to lose money in both the near and long term. For the moment, its just decaying.
TVIX - close to putting in a new low
TVIX almost put in a new low, volume seems to have stabilised, although that in itself is not that important. After all, it should - in theory, make almost no difference whether people are buying or selling.
VIX - near term 'Bullish market' outlook
I will still argue that even under a bullish market outlook of 1400+, VIX should at least test 24/26 in the near term. However the fact we put in a new low today after what appeared to be a solid 6 week base...its not the most pleasing sight for the bears.
Good wishes for Tuesday