Thursday, June 30, 2016

VIX Volatility Daily Chart Battle for 200-Day MA

The VIX continues creating theatrics at or near the 200-day MA at 18.03. The VIX is under the 200-day signaling bullish markets for the near and short term ahead, however, the battle continues and markets remain erratic and unstable. In three days, the VIX has dropped from near-27 down to 16. The lower volatility provides rocket fuel for stocks. Bulls are celebrating as long as the VIX stays under 18.03. Bears got nothing unless they push VIX above 18.03.

The Keybot the Quant algorithm is long the market and one parameter currently being tracked is VIX 16.17. The algo deems the 16.17 as a key bull-bear line in the sand. If the VIX falls under 16.17, the bears are toast and the bulls will take stocks far higher. Market bears must prevent a sub 16.17 number with all their might to remain in the game.

Thus, above 18.03 is uber bearish for the stock market. Between 16.17 and 18.03 the bulls and bears are fighting it out with stocks maintaining a positive bias. Under 16.17 and the bulls rule the stock market. 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 12:08 PM EST on Thursday, 6/30/16: The bears are punched in the face again. VIX collapses under 16 to 15.86. LOD 15.29. The low volatility creates rocket fuel for the stock market. Bears are toast unless they move the VIX back above 16.17 pronto.

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