We're gradually realizing that watching the action of the XIV can provide an important telltale warning of impending price changes. We noted XIV's divergent action in yesterday's afternoon session and we saw that that played out dramatically today. Looking back on past days when the XIV has closed contrary to price momentum reveals that this is actually an important performance to track. We do this already in the XIV premium chart on M3, but this is daily data, whereas I'm suggesting that looking at hourly or 130 minutes bars might provide a valuable fractal version of the XIV premium charts. More to come on this promising indicator in future posts.
