VIX Volatility 15-Minute Chart

There are a couple key levels to watch on the VIX. The Keybot the Quanta algorithm is tracking VIX 10.14 as a a key bull-bear line in the sand. The 200-day MA is 10.85.

The bulls rule under 10.14 as shown by the green bubbles that represent the stock market rising. When the VIX popped above 10.14 on Wednesday, that created market angst (red circle) but the bulls quickly began slapping the bears in the face again into today. The VIX is at 10.12 now teasing that 10.14 level.

On Wednesday, price spiked all the way up to tap the 200-day MA exactly at 10.85, but the market bears failed and could not push above. This led to the VIX retreating and by late Wednesday into today the bulls are celebrating again with record equity prices. It is odd that stocks are printing record highs and the VIX is also moving higher. The VIX should be dropping like a rock.

If the VIX remains below 10.14, the bulls rule the stock market day after day. If the VIX moves above 10.14, the upside in equities will stall with the stock indexes moving sideways and with a slight negative bias. If the VIX moves above 10.85, the stock market will fall apart.

Considering the uber low put/call ratios that are going to have to be shown respect, it would not be surprising to see the VIX spiking above 10.85 in the days ahead next week or the week after. Those 10.14 and 10.85 levels can be used as rudders that tell you the direction of the stock market ship.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 11:33 AM EST: Interestingly, the VIX spikes to 10.23 so the market bears are beginning to growl despite the stock market record highs. The SPX moves lower from the record high at 2784.51 to 2778.