Saturday, September 10, 2016

VIX Volatility Daily Chart Battle at 200 MA

An extremely important event occurred yesterday in the market carnage. The VIX moves above its 200-day MA at 16.70 signaling bearish markets for the days ahead. One day does not make a trend so the bulls may push the VIX back under early next week. Bears win with the VIX above the 200-day and bulls win with the VIX under the 200-day MA.

The Keybot the Quant trading algorithm is short currently and tracking the VIX 14.53 level as a key bull-bear line in the sand. If the bulls push the VIX under 16.70, stocks will stage a comeback rally. The bulls, however, will need to push under 14.53 to signal the all-clear for a strong stock market rally ahead. Bears are fine going forward as long as they maintain the VIX above 14.53.

In the very near term, watch VIX 16.70. On Monday, it does not matter which way the stock market moves. Watch the VIX instead and it will be online after 3 AM EST. VIX 16.70 will tell you who wins and loses on Monday. 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.

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