VXX Daily Trend Model

On January 22nd I posted a blog on VXX as a potential measure of market volatility, direction and  momentum.  At that time, the Daily VXX Trend Model had just flipped LONG, suggesting an imminent market decline.  Here is a current VXX Daily Trend Model chart:

VXX Daily Trend Model

I've been having success trading VXX on mush shorter time frames, using 30 and 15 minute models trying to catch intra-day changes in market volatility and direction.  Longer-term, the Daily chart might be an effective intermediate directional tool.  Note how the Vortex indicator is now neutral as VXX consolidates recent gains.  

According to this model, it would take a VXX daily close below 29.43 to suggest the market has reversed to a more bullish bias.