$UVXY & $SPY: US Markets might be in for some turbulence
I've been following the US markets closely the past few weeks, and have noticed a lot of volatility and resistance within the price action of the $SPX and $DOW.
Usually, Volatility derivatives, such as $VIX, $UVXY, or even $XIV, tend to also move appropriately as well. $UVXY is shown here, which is the proshares ultra short, tends to have the highest degree sensitivity towards any market movement. It's a very short term product, due to its aggressive time decay, which means TA on the long term is usually inconclusive. However, it's showing some interesting signs short term, such as this bullish downwards sloping wedge.
Furthermore, $SPY is showing rejection at the 1.61 FIB, with a bear divergence forming since the beginning of the year. This bear divergence is confirmed in RSI, MACD, and within the price action.
It's interesting to see that the technicals of these two financial products confer with each other with the possible general direction of the market.
This is neither a suggestion to long or short, just an overall analysis of the US market.
Usually, Volatility derivatives, such as $VIX, $UVXY, or even $XIV, tend to also move appropriately as well. $UVXY is shown here, which is the proshares ultra short, tends to have the highest degree sensitivity towards any market movement. It's a very short term product, due to its aggressive time decay, which means TA on the long term is usually inconclusive. However, it's showing some interesting signs short term, such as this bullish downwards sloping wedge.
Furthermore, $SPY is showing rejection at the 1.61 FIB, with a bear divergence forming since the beginning of the year. This bear divergence is confirmed in RSI, MACD, and within the price action.
It's interesting to see that the technicals of these two financial products confer with each other with the possible general direction of the market.
This is neither a suggestion to long or short, just an overall analysis of the US market.