Local Top for VXX?

The VXX is trading down this morning, and with the very overlapping and sloppy action off the lows the purple count is still my primary path. With the breakdown today I think it's likely that we have made at least a local top and potentially even a top in all of wave iv per the purple count.

When I say local top I mean that yesterday's high could have only been a wave (a) of iv, which would put us in a wave (b) of iv still needing another wave (c) of iv up to finish of the purple wave iv. I am showing this potential path on the 15m chart and under this case, I would want to see this hold the 26.00-25.47 zone. A move through that zone would give us the signal that we have indeed topped in all of wave iv. I am leaving the blue count on the charts for now, but I really do not see this as a probable outcome at this point in time at all.  However, since it is still technically valid it will remain on the charts. 

From a trading perspective, as frustrating as this is there is simply no setup in either direction at the moment. I certainly have no desire to attempt to short the final fifth wave of a potential Ending Diagonal since these typically result in very sharp moves in the opposite direction.

From a long perspective, we also do not have a setup in place just yet, as we have a clearly corrective move up off of the lows and the larger pattern is still suggestive of at least one more low. So, for now, I will remain on the sidelines waiting for a better setup to develop.

VXX 60
VXX 60
VXX 15
VXX 15
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.