A ETN with an unusual pattern
(Exchange Traded Note: VXX)
This is a daily chart of a self-eroding Product that behaves beastly in short-term bursts; the VXX has built within it an ability to drop incrementally whether the market spins sideways or if it rises, and as you can tell, the chart took forever to create a temporary bottom.
This is the bigger picture
The climactic spikes in VXX were not contained to below 50/ share, what I'm referencing here is the mid range in black, February highs in yellow and the blue dotted line marks the Summer drop in 2017. All of these levels are attainable
- The force driving it down at 56.5 (golden line) was the strongest because of the acute nature of the spike
- The follow-through since February has been tepid, and for that reason we have not experienced that much of a surge through 50 at all, the market needs to go through a phase of settling
- One thing that is most clear as far as the action after 1/29 is that VXX holds a strong internal bid above 39.20
Price moving around at the 225 SMA did not indicate a strong reading trend-wise but when you see it from a closer point of view one of the technical conditions becomes more evident.
Rather than closing below the blue line today it spike higher in a swift fashion. Also, the pattern I was suggesting with the red and black line makes the inference that the pattern will continue itself; on some level its a three part set up
Price breaks above the 50-SMA (green) and quickly drops below, and it does not take long before it puts in a pin-bottom before making the next move higher
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