VIX Impulse and Flag - SKF

Similar to yesterday, a gap up opening in the broad market was met with immediate selling. The difference today was that the volatility index (VIX) showed an implusive move up (flag pole) which took out the previous day's high and then formed a flag. The implications of decling and rising VIX have been discussed recently in comments.

The mid-day flag on the VIX correlated with flags in individual stocks and ETFs. SRS (inverse real estate ETF) was the %change leader on my WL. However, the mid-day "bull" flag (inverse to the market) in SRS was not clean. I found a much cleaner flag pattern on SKF (ultrashort financial ETF). The 15min charts below show the impulse and flags in VIX (left) and SKF (right). The flag in SKF setup on top of the 15min 20EMA. I partialed after three 15min bars and a trailing stop on the remainder was hit soon after.