Thursday, October 17, 2013

VIX Volatility Daily Chart

Keystone's trading algorithm, Keybot the Quant, has the ability to identify the key market sectors and other areas that are most dramatically affecting equity price direction in real-time. Keybot is long the market currently and at overbot conditions. The thrust in the broad indexes higher into the closing bell yesterday was due to the collapse in the VIX under the key 14.94 level identified by Keybot. This is the bull fuel. Thus, watch VIX 14.94 closely. Markets will sell off if VIX moves back above 14.94. Markets will continue higher with the SPX punching up through the all-time closing high at 1726 and all-time high at 1730 if the VIX remains under 14.94.

Since Keybot's number may not always be available via the web sites in a timely manner, watch the 200-day MA, now at 14.41, as a key market signal. Equities are in a bull rally with more upside ahead if the VIX is below the 200-day MA. Markets are in trouble if the VIX is above the 200-day MA. So watch VIX 14.94 and 14.41 to determine broad market direction today. If the markets sell off to begin the day, the S&P futures are currently -5, but VIX stays under 14.94, the bears got nothing. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 6:01 PM:  The VIX collapses today to a LOD at 12.89 and closing at 13.48 catapulting the market bulls to victory.

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