Stock Market Volatility Pops Higher Ahead Of Nvidia Earnings, Jackson Hole Symposium: This Fund Offers 1.

The ConvexityShares Daily 1.5x SPIKES Futures ETF (NYSE:SPKY) was spiking up almost 1% higher Tuesday, possibly confirming a new uptrend, which Benzinga pointed out was likely to happen on Monday.

The move was coming in tandem with an upward swing in the S&P 500 VIX Short-Term Futures Index (CBOE: VIX), which was moving inversely to the S&P 500 ahead of Nvidia Corporation’s earnings print and the Jackson Hole Symposium.

SPKY is a 1.5x leveraged fund, which tracks the SPIKES Futures Short-Term Index and measures volatility in broad-based equities in a similar way to ProShares Ultra VIX Short Term Futures ETF (NYSE:UVXY), which tracks the movement of the VIX.

For every 1% daily movement in the SPIKES Futures Short-Term Index, the SPKY fund seeks to move 1.5%, meaning that it’s for short-term trades and should not be held for a long period of time.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The SPKY Chart: SPKY was working to form a bullish Marubozu candlestick on Tuesday, which could indicate higher prices will come on Wednesday. If that happens, Tuesday’s low-of-day will serve as a higher low, which will confirm a new uptrend.

If a new uptrend is confirmed, bullish traders will want to see the ETF rise above the recent higher high, which was formed on Friday at $6.29, over the next few trading days. If SPKY falls lower on Wednesday, Tuesday’s price action may serve as a bull trap and the ETF could retrace toward the $5 mark.
Momentum in SPKY has been steadily rising, with the ETF’s relative strength index (RSI) increasing from the 27% mark on July 27 to about 57% on Aug. 17. Although SPKY’s RSI has recently dropped down to near the 50% mark since then, the rising momentum indicates an increased interest in the ETF.
SPKY has resistance above at $5.59 and at $6.68 and support below at $4.97 and at $4.55.

Image sourced from Shutterstock

UVXYProShares Ultra VIX Short Term Futures ETF

Not Available-%

Overview

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.

Benzinga

Benzinga

Stock Market Volatility Pops Higher Ahead Of Nvidia Earnings, Jackson Hole Symposium: This Fund Offers 1.5X Leverage