This Dow pattern recognition chart suggests new lows in the days ahead (and possibly a Wave 5 Sell Signal), which should be accompanied by new highs in volatility, i.e., VXX and UVXY. No guarantees here, but as we saw on Monday, market declines can be fast and furious and very difficult to chase. Better to have positions already on as the next decline unfolds. Also note that the table is not automatically shutting down positions when stops are hit. In this kind of volatility rules need to be bent...but not broken. Let's give stop-hits a little room to breathe.
