TVIX ,daily
UVXY, daily
Summary
*first keep in mind the daily VIX chart
Today's closing candle was a very important confirmation of yesterdays reversal day in the VIX. We've now slipped from the mid 18s to the low 15s in barely 8 trading hours.
It bodes very badly for early next week, and all things considered, VIX does look set for the 14s, if not the 13s in the latter part of next week.
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As for TVIX and UVXY, well, both got smacked lower into the close, and frankly, its to be entirely expected. Its almost a little surprising they held up as well as they did - considering they are 2x VIX moves, although of course, the further out volatility is holding up a little better.
If the VIX is back in the 13s by next Friday, then both TVIX and UVXY will be a good 10/15% lower.
*At some point this summer - perhaps late July/early August, the main equity market is set for a much stronger wave lower, and the VIX will have its first real opportunity to spike above the key 20 threshold.
Yet that is indeed a few weeks, if not another month or two away.
