Local Bottom for VXX?

Yesterday the VXX bounced off of the 200% Fib extension almost on the nose, which is a good signal that we may have formed at least a local bottom. 

We still have yet to see a full 5-wave move up off of the lows, however.  Therefore, we don't have confirmation that we may have struck a larger degree bottom just yet. 

Because it is likely that we are dealing with a diagonal down off of the 32.47 high, I have to rely more on larger degree price support and resistance levels rather than a shorter timeframe structure to help give better guidance as to where we are in the count. In this case, that price resistance level does not come in until the 21.69-22.99 zone. 

So given that we do not have full 5 up off of the lows just yet, unless and until we are able to break through that zone I still have to remain somewhat cautious here. 

VXX  60
VXX 60
Michael Golembesky is a senior analyst at ElliottWaveTrader covering Forex, the S&P 500 and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trade Alerts service and co-hosting the EWT Forex service.