iPath S&P 500 VIX Short-Term Futures ETN (VXX)

[risk on]

VIX and VXX share an obvious direct correlation, but VXX is not VIX . The correlation is such that VXX can be used as an indicator. For example, today before spy made a move up midday , VXX dropped sharply just prior. Sometimes VXX outpaces spy that way, and sometimes VXX and spy actually rise together. If that phenomenon occurs for more than just 15 min or so, then it's usually a really good sign of spy drop coming, all be it a very rare occurrence. VXX can also be used to confirm spy moves IMO, for example if we see spy drop but VXX doesn't rise sharply, then usually spy drop is just a blip, in my limited experience and opinion.