Options Oracle: 10/28/2011

The VXX is the ETF for the Volatility Index which is inversely related to the S&P 500. You can see that we are caught between two gaps with the most recent gap resulting in a breakdown of the $40 support level. As I mentioned in my last weekly market report, a breakdown in support for the VXX would mean a rally in the underlying market which is exactly what we saw. Keep an eye on this as we enter into next week. A gap fill to the upside on the VXX could mean a selloff in the broad-based markets.

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AJ Monte

About AJ Monte

As a premier trading consultant, AJ is one of the most sought after in his field. He teaches professionals specialized techniques on how to accumulate and protect wealth through innovative market techniques. TheMarke__404+

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