Awaiting Bottoming Signal in VXX

As noted last week we still do not have an initial signal of a bottom in place just yet in the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX).  Given the corrective structure, we are now left with watching price levels to give us that bottoming signal.

The overhead price levels still come in at the 23.79 level and the 24.97 level. Unless and until those levels are taken out we have no signal of a bottom being in place just yet and this still could continue to grind lower.

Furthermore, should we see a sustained break of the 20.97 level and/or a break of the lower trend line, then it would open the door to this seeing a more sustained move lower per the white impulsive path to the downside.

For now, however, and unless we do indeed see that occur, I am still leaning towards the purple path, but again I cannot rule out that we still see lower levels prior to that bottom occurring. 

VXX 60
VXX 60
Michael Golembesky is a senior analyst at ElliottWaveTrader covering US Indices, the US Dollar, and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trading service.