Wednesday, October 29, 2014

VIX Volatility Daily Chart 200-Day MA Cross

Markets are idling sideways until the Fed statement. A key market signal is the VIX 200-day MA where market bears win above and market bulls win below. The September-October sell off was verified in the third week of September when VIX launched above the 200-day MA. Bears had smooth sailing until the last couple weeks and today the VIX drops to test the 200-day MA; and bounces.

Market bears remain in the game as long as the VIX stays above the 200-day MA at 14.06. All hope is lost for market bears and bulls will rule if VIX falls under 14.06. Check the VIX after Fed Chair Yellen brings the tablets down from on high and releases the Fed statement at 2 PM today (6 PM London time). 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 9:05 PM: VIX ends at 15.15 after printing a LOD at 14.19 and HOD at 16.28. Keep monitoring this chart for the days ahead. Bears win moving forward as long as they keep the VIX above the 200-day MA at 14.06. Bulls will rule the markets going forward if the VIX drops under 14.06.

Note Added 2:45 PM on Thursday, 10/30/14: VIX drops intraday down to 14.07 for a LOD exactly at the 200-day MA at 14.07. VIX  bounces now at 14.35. This is uber important. A VIX under 14.07 will give the bulls the firm go signal for upside markets ahead. If VIX remains above 14.07 the bears remain in the game.

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