TVIX, daily
UVXY, daily
Summary
The leveraged instruments..when they go badly, are unquestionably the worse horror show of all.
We've now seen the 2x bullish VIX instruments lose about 45% of their value in just two trading days.
Not much can be said, other than a floor will be reached...'at some level'.
The real problem though is even if the VIX went back to the level it was at the Friday close, due to the statistical decay, TVIX/UVXY would still be down around 10/15% !
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As for the VIX itself...
VIX, weekly
This is one of the most powerful down candles we've seen in a very long time, perhaps since market floored in October 2011.
Those who believe this two day index rally is not going to last, should be seeking a VIX levelling out in the 13s..sometime in the middle of next week.
