The VIX futures curve (F1-F2) was in backwardation unitl the April contract expired on the 18th. However, backwardation has continued to try to creep into the futures curve, and the current F1-F2 terms have already found themselves in backwardation, although not consistently.
Again, this does not mean pile money into VIXY, but it does raise concerns for people who have been expecting to be able to continue to profit off of XIV.
VIXY topped out on Friday, in after hours trading. However, VIX and VIXY have not seen the large drop which we are accustomed to seeing after a bump. Certainly they have fallen, but they are still seeing a lot of support.« Continue »
While I do not use Fibonacci retracement and extensions very much, drawing a retracement study from the most recent high to the most recent low, it is clear that the index has spent a lot of time around a few price levels: 11.79, 12.34, and 13.24. If the VIX breaks above this level, we could see a movement to the 161.6% level which would place the VIX at 14.70. This would place the VIX above its 50, 100, and 200 day moving averages.
