VXX EW Counts Possibilities
· After two fake mini breakouts, VXX continued to subdivide lower.
· There are no reliable signs of a pending reversal.
· Need to see sustained breakouts of trendline resistances.
· The chart shows two possible EW counts: 1. Black – VXX moves in 5 waves, and 2. Green – VXX moves in 3 waves; both patterns have been observed in the past.
· The green count implies that VXX completed 5 waves down and should reverse, but it has only had a meager bounce in 3 waves so far.
· The black count can be completed with one more micro wave down.
· But keep in mind that one or two sub-waves could keep extending, and any assumed count can’t be considered completed until it is confirmed by a strong counter-trend move.
