VXX is the most popular. But, and this is a big but, it's based on VIX futures. It has a wicked drag because of the high cost to roll the futures. It does not follow the VIX step by step, rather it follows the VIX future. The VIX future works in a slight different time frame.

While your analysis of the market is spot on, the VIX won't get much lower. It can sit here and bounce along in a small range for an extended period of time. Meanwhile, the VIX future is rolling, rolling, rolling and you are losing, losing, losing. Not only do you have to be right about direction, you have to be right about timing. That's hard to do. Unless you are incredibly lucky, it won't work with VXX.

I've never been able to figure out a way to offset the high cost of the roll. I belong to a number of trading groups that actively trade options and futures. Most of us have learned the hard way to stay away from VIX derivatives. If you look at a chart, what you don't see is how many times the ETF has been reverse split.

I also make it a rule to not trade inverse ETF's or ETF notes for this very reason. What you can do, however, is to short a bullish ETF betting that it will go down if the VIX goes up. You can't do that in the brokerage link.

In the brokerage link, you are limited to inverse ETF's (not a good idea, see above), covered calls and cash secured puts. By limiting our strategies, Fidelity and Delta don't seem to understand that this restriction results in greater risk to our portfolios. We are forced to trade bullish only strategies. Markets will go down.