VXX is Slow to Anticipate the Onset of a Meaningful Correction in SPY

Even though the major averages might have started a correction, the IPath S&P 500 VIX ST Futures ETN (VXX) certainly has not rocketed in anticipation of such a scenario.

Let's notice on the enclosed chart that the VXX upmove off of Friday's intraday low at 12.85 has not (yet) inflicted major damage to the otherwise still intact and dominant downtrend.

To do so, VXX needs to claw or spike its way above 13.90-14.00, which will trigger higher projections towards a test of its April-June resistance line, now at 15.25.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!