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Sentiment Speaks - XIV Closing In On The All Time Highs Once Again

Jul. 14, 2017 2:28 AM ETSPY, SVXY, TVIXF, UVXY, VXX, XIV6 Comments


  • Price action over the prior week.
  • Anecdotal and other sentiment indications.
  • Price pattern sentiment indications and upcoming expectations.

Price Action Over Prior Week

After striking a bottom on June 6th in what I had been counting as a smaller degree ending diagonal this week the XIV has continued to push higher trading 12% higher from last week’s low into the close on July 13th. We are now once again within striking distance of seeing a new all-time high in both the XIV as well as the SPX. This move up off of last week’s low in the XIV does fit well with the larger degree pattern that we are watching on the XIV as the preferred path is looking for another high over the June 27th high prior to making a larger degree top.

This move up off of last week’s low in the XIV does fit well with the larger degree pattern that we are watching on the XIV as the preferred path is still looking for another high over the June 27th high prior to making that larger degree top.

Anecdotal and Other Sentiment Indications

Along with both the July and August futures contracts, the spot VIX Index is also trading down significantly from last week’s intraday high of 13.07 closing yesterday back under the 10.00 level at 9.90. The July VIX futures contract expires next week and as long as the SPX is able to hold over it’s shorter term support level and continue to grind higher, then we should see both July and August futures move lower into next week’s OPEX. This will then keep the pressure on the XIV to continue to follow through on it’s own shorter term bullish pattern giving it enough juice to potentially propel it back over that June 27th high.

Price Pattern Sentiment Indications and Upcoming Expectations

In the article, I wrote last week I had focused on

This article was written by

Michael Golembesky profile picture
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Michael Golembesky is a senior analyst at ElliottWaveTrader.net who focuses on the both the Forex Markets as well as the U.S. Equity and Volatility markets.

Mike is a renowned practitioner and educator in applying Elliott Wave analysis to trading forex and volatility instruments. He is a popular speaker at financial forums and conferences in the U.S., including The Traders Expo and The Money Show, and widely syndicated on sites including MarketWatch, Seeking Alpha, and Nasdaq.com.

Mike can be found in the main room at ElliottWaveTrader.net as well in the volatility (VIX room) and the Forex service within ElliottWaveTrader.net. Along with analysis on the XIV and VXX ETFs, the volatility service also has a model portfolio and trade alert component.

Michael is also a contributing analyst to the Market Pinball Wizard.

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