Very interesting divergence forming.

This is still in the very preliminary stages but I think I see a classical divergence forming between stocks and the VIX.  The relationship is normally, stocks up, VIX down, stocks down VIX up.  That's what makes the following two charts so interesting.

TVIX is the triple daily VIX.  It is a short seller's dream in a bear market.  Look at how the small bear dip of January doubled the price of these.  It is also a short seller's worst night mare when the chart goes against them because almost all of the gains were given back up in short order.

But therein lies the interesting part.  The key word is ALMOST.  When you connect the lows it is starting to look like higher lows.  That is very, very interesting!  It is interesting all by itself but even more so when you look at the S+P 500 chart below it for the same time frame.

Unlike the NASDAQ, the S+P 500 has not made a higher high than the January high.  In fact, it currently sports a lower high.  In fact, if something doesn't change rapidly next week, it will also be sporting a declining double top.  I would have expected at this time for TVIX to have a lower low even though S+P did not have a higher high.  Why?  Because TVIX bleed value quickly with time.  They are based on short term options and options bleed value with time.  So in the last month's round trip, TVIX should have put in a lower low. Not only have they not done that (yet), the inclining double bottom that they currently show is of a higher angle than the declining double top of the S+P.   So the shares of TVIX have effectively gained ground in that time frame, not lost it.

This suggests that a bearish undertone is still present and ready to expose itself, perhaps with rapid onset.  All bets are off if TVIX puts in a lower low that is not part of an ending diagonal as shown above.