The reason is Cyprus. People bought more insurance. If this resolves in a positive way, VXX will drop like a rock due to people selling their insurance. The VIX could even hit an all time low next month. I would have shorted both VXX and XIV as I think one of them is going to spike huge in the near term.
I posted yesterday about divergence. Nobody noticed. They notice now. Read an article yesterday (actually a video on CNBC or CBS Marketwatch) explaining how VIX had bottomed and predicting that it would move much higher in coming years.
Definitely something going on today. VXX normally down $1 on an up day like this.
What happened was, that I tripled my UVXY short position on Thursday. So get all of this weird movement in VXX and UVXY. That always happens when I make a trade. You are right, VXX should have been down $1, but instead it trended upward the entire day, despite a big move higher in the S&P. Now that my trade is a few days old, movement in VXX and UVXY should get back to normal. There was a spike down after market close, and unless some unexpectedly bad news comes out on Monday morning, VXX and UVXY should have a nice down day by close of trading Monday afternoon.