VIX Volatility Model - Update 5-20-16
Given where the markets opened, there was more short-term upside and less downside for VXX/UVXY which trade inversely to the general market. Indeed, despite the major averages having moved higher from the open, VXX/UVXY have been somewhat resistant to moving much lower.
At present, given the tone of individual stocks, major indices appear to have somewhat maxed out. The S&P 500 came up almost to its 50-day moving average, and the NASDAQ Composite may have peaked out once it got close to 1.5%. The question will be whether VXX/UVXY will hit their stops should the markets continue higher from here, or whether they can continue to buck any short-term uptrend in the general market.
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