VIX Futures ETF Nosedives Ahead of Reverse Split

Unless today's ProShares Ultra VIX Short-Term Futures ETF (UVXY) plunge is warning us about an approaching upside vertical thrust in the S&P 500, then the weakness from 5.40 to 4.90 is liquidation ahead of tomorrow's 10:1 reverse split.

In any case, every time the price structure has pressed beneath 5.00 during the past month, buyers emerged who propelled the UVXY back to 5.70/80.

The interesting thing about today's weakness is that the cash VIX is well above its August 17 low at 13.30 (last is 17.41), which is further evidence that today's decline in the UVXY represents longs bailing out ahead of the split.