Nearing Local Bottom In VXX

The VXX finally broke down a bit yesterday, but overall the count remains the same.  I think it's reasonably probable that a local bottom may be close. If we do see that local bottom and push back up over the 23.56 level, then I would be looking for a wave (ii) retrace up towards the 25.38-27.05 zone.

If we break over that zone, then it would open the door for a larger degree bottom to be in place, but this is not my base case at this point in time. 

If we push directly lower without moving higher and move through the 20.84 levels, then the next key fib that I will be watching is the 20.34 level below, and it would suggest that we are already in the heart of the wave (iii) of iii as shown in the white count. Unless that does occur I still think it is reasonably probable to look for at least a minor pullback from around these levels, with that caveat that we may need a bit lower before that does occur.  

I do not see any clear upside setups at the moment however and would want to see a full five up off of the lows to give us any sort of clear setup. We do not have that in place at all just yet.  

VXX 60m
VXX 60m
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.