Could be close to second pre-top to print in the market (potential small nested wave 3/C top). This is the most likely scenario if weekly VXX MACD print remains above the signal line. Also, the actual MACD print hit a low close to the one prior to the previous top which lends credibility to the overall maturity of the MACD. It could of course decide to buck lower as VVIX volatility of volatility is definitely a prevailing factor in this structure so we will watch this closely. Since this next move will most likely not be a high degree top, we do not expect a 'quiet' entry like last Feb 2020 so expect some whipsaws.
VXX is about to close a weekly gap from 2/18-2/24/20. A first long-term target is immediately below this gap in the $14.45 price zone.
An aside note: We have good respect for McClellan Financial Publications who we do not follow but take note of on occasion when warranted. Their recent commentary/analysis meshes with the 'E' top projection shown below estimated to print in the summer of 2021. Coincidence or a parallel confirming analysis? We lean towards the latter of course. This will hold more likely if the 'C-D' leg is an accurate label inside the megaphone outline shown in the $SPX plot just below.
See Critical Long-Term Review Here
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Our favorite go to site- McVerry Report
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