VIX Volatility Daily Chart

The VIX chart was posted a few charts back.Today it was decision day for the critical 200-day MA at 10.95 and that red candlestick tells the story. The bears were slapped in the face with the VIX collapsing under the 200-day MA and then under the 10 level and all the way down to the LOD at 9.52. The bears were running for their lives as usual. Low volatility sends stocks higher.

The bulls win the game with low volatility. The purple bar is the key 10.23 level identified by Keybot the Quant. Stocks will weaken and sell off above 10.23 and then sell off big above 10.95. Of course if the VIX remains below 10.23, the bulls will be smoking expensive cigars enjoying the big rally in the stock market; they will flick the ashes into the bear's faces.

UTIL fell through its 50-week MA at 720.98 today typically a harbinger of doom for the stock market. At the same time that happened, semiconductors jumped higher and volatility dropped. This is odd market behavior.

For Wednesday, market bulls win big if the VIX stays below 10.23 and UTIL rises above 721. Market bears win if the VIX moves above 10.23. The SPX daily chart is ready for a pull back due to negative divergence. 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 Wednesday Evening, 1/3/18: The bulls come to play this week sending stocks strongly higher Tuesday and today. The VIX plummets to an 8-handle only printing under 9 for the sixth time in history. Traders are completely fearless and complacent. Everyday is a party and no one is worried since they are too busy buying stocks.