TVIX, UVXY - new lows..again

With the indexes clawing higher into the close, the VIX was on the slide again, and those 2x bullish VIX instruments of TVIX and UVXY broke new historic lows. However, if the indexes are indeed maxed out in the low sp'1560s, the VIX should start to surge as the week proceeds.


TVIX, daily

UVXY, daily

Summary

First, keep in mind the daily VIX chart..

Near term upside for the VIX looks to be the 16/17s. It will be very difficult though to break into the 20s until we see some very considerable downside momentum, something we've just not seen at all this year.
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As for TVIX/UVXY, well, the fact both put in new lows today -despite the VIX still well above its March low of 11.08, again testifies to the problems inherent in these leveraged VIX instruments.

For those who were buying at the close of today - or indeed, near the Tuesday open (assuming we open flat), these levels are probably pretty reasonable for good upside into the latter part of the week.

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What will be paramount to anyone long TVIX/UVXY, is that we do NOT break above the recent sp' 1573 high.

If that is broken, then the near/mid term bearish case for the US market will need to be seriously reconsidered, if not thrown out entirely.

I'm guessing that won't be an issue though.