Tuesday, August 18, 2015

VIX Volatility Daily Chart

The VIX remains below the important 200-day MA at 14.89 which sends the stock market higher. Bears need VIX above 14.89 before they can perform any significant downside selling action. The last strong selling event was in late June early July (red circle) but volatility retreated in July printing sub 11 showing uber complacency in markets. Why would anyone worry? The Federal Reserve and other global central bankers are committed to printing money indefinitely to pump the stock market higher to make the wealthy wealthier (since they own large stock portfolios) so the party continues.

Over the last month, the VIX has made two attempts to move above the 200-day (blue circles)  but is spanked back both times. Will a third time be the charm? The red bar highlights the VIX 13.48 level which is identified as a key bull-bear line in the sand by the Keybot the Quant algorithm. Thus, bulls win big if VIX stays under 13.48. Market selling will begin and increase if VIX moves above 13.48 and moving higher. If the VIX moves above 14.89, the market selling will accelerate and stocks will be sliding down the rabbit hole. If stocks sell off at the opening bell but the VIX is not above 13.48, then the bears got nothing and the stock market will recoverThis 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 9:21 PM EST: The VIX pushes higher to 13.79 so the bears create selling pressure. Bears need to push above the 200-day to prove they mean business. Bulls will create a rally higher if VIX drops under 13.48.

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