Thursday, March 27, 2014

VIX Volatility Daily Chart

Same-o story with the VIX these days. Keybot the Quant algorithm identifies VIX 14.39 as the key bull-bear level. A standard signal that is a useful market forecasting tool is the VIX 200-day MA now at 14.66. Equities move lower as volatility moves higher. Equities move higher as volatility moves lower.

Bears are happy campers as long as VIX remains above the 14.39-14.66 zone since market selling will continue. Market bulls got nothing unless they can push the VIX under 14.39-14.66This 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 3:30 PM:  Late session drama; the VIX drops to 14.88 only 22 pennies above the critical 14.66 level. Can the bears hold on or will the bulls push volatility lower to receive upside market fuel?

Note Added 5:22 PM:  The bulls are not giving up. They close the VIX exactly at the 200-day MA at 14.62. Do you think the 200-day is important? This creates a bounce or die move tomorrow. One side is going to be very happy, the other side very sad. As long as VIX is above 14.39, bears win. Bulls win under 14.39.

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