EOD: Small negative divergence on breadth plus several down spikes on VIX pre-open is a strong indicator that a move is likely in a coming session. It could print a pivot point for the summation index to commence a rollover process or something else. Again with the patience. VXX spent most of the day on the first target zone of 9.79. While this is happening ES should hit some of the higher targets shown.
Having said that- there is a question of whether the conditions are premature for a summation rollover to occur due to the fact that breadth is not quite negative enough on the weekly so that needs to be considered. Perhaps a pullback of some sort needs to ensue first to create negative breadth creating the necessary divergence needed when higher prices kick in again to create a top. Sounds confusing but it's quite straight forward really- just that it is an unknown until it prints.
original post:
Some legs exhibit this behavior and it may or may not be significant other than to note it. Could it keep adding smaller and smaller wave structures or inflate again? ..sure especially since a top is still not showing up and negative weekly breadth is non-existent. Also noted- there are 7 days worth of pre-open VIX down spikes almost back to back measuring from -7% to -4.5%. It is very unusual to see that many so close together. Could be setting something up for next week. Similar behavior occurred around 2/10/2021 and set up a pullback from 2/16 thru 3/4/2021.
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