Tuesday, March 15, 2016

VIX Volatility Daily Chart

Despite the selling in stocks over the last couple days, the bears got nothing unless the VIX moves above the critical 200-day MA at 18.67. The VIX is under 17 at 16.84 so the bulls are laughing at the hapless bears. One bull lights a match on the forehead of a bear and then lights his cigar tossing the spent sulfur stick at the bears' face. Bulls are not worried due to the low volatility. Fed Chair Yellen provides the FOMC rate decision tomorrow at 2 PM EST and she holds a press conference at 2:30 PM EST.

If the VIX remains under 18.67, the bulls win going forward and the rally party will accelerate into high gear.

If the VIX moves above 18.67, the stock market will be noticeably weakening and tumbling lower.

If the VIX moves above 19.79, a level identified by the Keybot the Quant algorithm, stocks will be in free fall collapsing down the rabbit hole and the bears will grab that cigar off the bulls and put it out on the bull's forehead.

Fed Chair Yellen holds all the cards. It is absolutely shameful that central bankers carry such clout in markets; it is disgraceful. Their Keynesian money printing that enriches themselves and their investment bank masters will create massive problems in the months and years ahead. 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 Saturday Morning, 3/19/16: The VIX collapses last week under 14 to a LOD on Friday at 13.75. VIX ends the week at 14.02 signaling lack of fear in the markets.The VIX was at 31 signaling fear and panic only 26 days ago. The VIX is at lows not seen since last Halloween at the end of October. The last two candlesticks may create a Tweezer Bottom and quick spike in volatility which would create a pull back in stocks. On the VIX daily chart, note how the 200-day MA failed, then price came back up to back kiss this key level, and failed, collapsing volatility lower which sent stocks higher. The central bankers have targeted the lowering of volatility over the last few years to boost the stock markets.

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