Well that didn't take long! Yesterday I put up a chart looking for the trend in VXXB to continue up in the green channel. The "line in the sand" known as the reaction line (drawn in red) was broke this morning. Meaning that the markets still have some bullish potential. We should see a retracement back up to the green Buy Line. However that is a selling area for the VXXB. We are now bearish on VXXB until the VXXB can break over the red declining resistance line shown. and We will wait until the VXXB price breaks higher than the recent swing high near 38.20 to set up a buy signal.
My instinct still says the market is way overbought. and this signal in VXXB will be a temporary short lived one. Trend line "bump" may be needed. But I'm just an "Old Fart" trader. So when levels are broken I must adapt to them and respect them until shown otherwise.
My instinct still says the market is way overbought. and this signal in VXXB will be a temporary short lived one. Trend line "bump" may be needed. But I'm just an "Old Fart" trader. So when levels are broken I must adapt to them and respect them until shown otherwise.