Volatility ETF (VXX) is Key ETF to watch this Week

Published on Sunday, 15 August 2010 21:21 Written by Christopher Lynn

New York, Aug 15^th (TradersHuddle.com) – The iPath S&P 500 VIX Short Term futures (NYSE:VXX) will be a key ETF to watch this week, given last week overall market weakness and the fact that the S&P 500 closed right on the verge of another breakdown that could send the broad market index to test the early July low of 1,010.

Investors seeking protection from a market meltdown will be flocking to the VXX or Volatility ETF, which led in money flow near Friday’s closing bell, with a percentage gain of over 2.5% from Thursday’s close.

The Volatility Index ETF (NYSE:VXX) appreciated more than 11% last week, and given that it closed above the 20 day moving average, investors will be looking for upside towards the next resistance point that coincides with the declining 50 day moving average at the $25 area.

See chart below