A reaction fractionally very close to the ES price point where SVXY and VXX both stalled for several weeks on 12/9/20 could be expected as a 'reset' that pulled UPRO back from it's over-extended high was needed. UPRO has now taken out it's daily 50ma by a good amount and ended the week 0.7% above it which does leave room for more down. UPRO's total drop of 17% from it's top now straddles the 50ma about evenly. As we noted in an earlier post, UPRO hit a very significant high recently which most often leads to a large market corrective.
The technicals look as if it needs more time but less certain at this point which probably was the intention as oversold conditions in the market were persisting and now UPRO may need to 'oversell' further into a positive divergence so the wave 'C' down can print near ES 3654 followed by a large retrace up which fits the projection to begin the main decline proper from higher up when VXX hits it's low target. Increasing pierced levels of UPRO's 50 ma could be significant.
Also note that as UPRO pulled back (and then re-elevated some) VXX remained in a small-ish range and still has room to go up from here. It's daily indicators are holding onto an upturn. If we have missed the correct analysis, then that will become apparent sooner rather than later.
See Critical Long-Term Review Here
The bots will flag here when they see a top. (1/25/20, 2/20/20, 4/9/20)
This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.
Our favorite go to site- McVerry Repor
No comments:
Post a Comment