Wednesday, December 2, 2015

VIX Volatility Daily Chart

There was a big fight at the 200-day MA at 16.25 which determines bullish or bearish markets and the bulls win with VIX collapsing to 14.67. The fix was in after Monday's stock market selloff because the VIX did not end the session above 16.25. Therefore, you knew the bears had nothing and yesterday the bulls punch the bears in the face.

Bears need VIX above 16.25 or they got nothing. The stock market will float higher as long as VIX remains under 16.25. The Keybot the Quant algorithm remains long the market and the model identifies VIX 18.30 as a key bull-bear line in the sand. 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 12/3/15, Thursday, Before the ECB Rate decision and Opening Bell: In the Wednesday session, the VIX moves above the 200-day MA but only for about an hour at the peak of the stock market selling between 2 PM EST and 3 PM EST. VIX ends at 15.91 so despite the market selling off, the bears got nothing without the VIX moving above the 200-day MA at 16.25. This drama continues; keep watching VIX 16.25.

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