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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