Going down?

It really is too early to call a down on the market. True it has broken support. But there has been no exuberant rush as the last few doubters run to grab at the coat-tails of a dramatic bull run. There are few of the characteristic signs of a change in direction other than that the market has lost momentum.

A couple of days ago I sold most of my shares. I dumped the rump of my gold holdings as that market collapsed. Now I am wondering whether to play the market on the downside.

I have tentatively taken a position in and ETF code VXX. The next two charts show what it does. The first shows the S&P 500, the second the VXX. To make it clearer I have inverted the chart of the S&P 500 (so that when it is rising the chart points down and vise versa.)

If I'm right and the market does begin to crumble I should make a bit of money on the way down. Only time will tell.