While Equity Indices Nosedive, VIX and its Derivatives Yawn

The one question that continually zips across my mind today is the following: why does the the ProShares Ultra VIX Short-Term Futures ETF (UVXY) act so bad (timid) in the face of what "feels" like a meaningful bout of weakness in the e-SPM?

Look at the enclosed Point and Figure chart, and notice that UVXY remains right near its lows of 9.60 (print basis), and needs to hurdle 11.20 to inflict any damage to the otherwise still powerful downtrend.

Where's the beef?

Well, maybe the UVXY is warning us against getting all excited about this sell-off in the e-SPM, because it will be another bear trap in the e-SPM prior to a resumption of near-vertical strength?

Bottom Line: to hold a long position in UVXY here represents an insurance policy against a very negative surprise, rather than a position that has supportive technicals and a supportive trend.