Well, things are looking better for this trade. The VIX went as high as 14.68 today (according to my IB chart). Two days ago was a bullish engulfing candle, a bullish signal. Yesterday's candle closed above the 8 daily EMA. Today's candle confirmed that bullish signal by closing higher. But, we closed right on the 20 SMA. As you can see, looking back over a few months, the 20 SMA (green) has been a resistance level. Other bullish signs include the 3 day EMA (pink) crossing up over the 8 EMA (orange), and the DI+ crossed up over the DI- (see the ADX/DMI subchart). You'll also notice the stochastics still have plenty of room to run.
On the other hand, in addition to the possible 20 SMA resistance, there may be a couple more trading days to the Santa Claus Rally, depending on how you define it.
My Jan 27/32 VXX Call spreads are still negative, but I will stay in longer to see what happens from here.
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