Tuesday, December 23, 2014

VIX Volatility 2-Minute Chart

The bull party continues in stocks although tech stocks are backing down with the Nasdaq negative mid-session. Keybot the Quant algorithm remains long and is fixated on VIX 14.70 as a bull-bear line in the sand. Price is teasing above and below today. If the VIX remains above 14.70 the equity upside will stall and a lid will be placed on the market upside. If the VIX drops under 14.70, it is party time for market bulls as stocks likely trend higher into early January.

The prior CPC chart showing uber complacency would agree with the first outcome and VIX staying above 14.70. Watch it closely since it will tell you the market direction path ahead. The VIX 200-day MA is 13.99 and price is above which is a bearish signal for markets. If VIX drops under 14.70 then loses 14 the bears are toast. If VIX stays above 14.70 market bears are fine. The fight continues. 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 12:42 PM: Here comes the VIX moving lower off the 14.93 about twenty minutes ago now at 14.76...... 14.75...... high drama. The VIX 14.70 will crown the winner moving forward.

Note Added 12:50 PM: Whoa... the theatrics continue. VIX is at 14.72 now only remaining two pennies on the bear side. Market bears are holding on by a thread. The bulls are ready to pop the champagne corks if VIX loses 14.70. Okay, volatility, what say you? Bounce or die.

Note Added 12:53 PM: VIX 14.71. If there was a time for the bears to use Popeye's spinach, it is now. The decision determining market direction is at hand.

Note Added 7:41 PM: VIX 14.80. The bulls and bears battled with the VIX dropping under 14.70 but then at 3:30 PM popped back above. Thus, the stock market upside is not a done deal. Bulls need to push the VIX under 14.69-14.70 to prove that stocks want to finish the year moving higher.

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