Keystone posted the VIX chart last week mentioning the extreme importance of the VIX 200-day MA cross. Well, look at that. Price tagged the 200-day MA at 16.77, on the dot, and retreated. How do you like them apples? Of course, volatility and the stock market move inversely to one another about 90% of the time, so lower volatility creates bullishness in stocks.
Market bears got nothing unless they push above VIX 16.77. Keybot the Quant algorithm identifies VIX 15.06 as a key bull-bear line in the sand (blue bar). Price pierced below this level last week (uber bullish) but recovered back above (bearish).
Thus, bears win bigtime above VIX 16.77; stocks will fall like rocks. Bulls and bears battle for market control between 15.06 and 16.77. The bulls win bigtime below VIX 15.06; stocks will catapult higher. The new week of trading begins at 15.96. 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 Monday Morning, 5/20/19, at 7:30 AM EST: 2 hours before the opening bell for the US trading session, the VIX pops to 17.08 and S&P futures are down -16. 10-year yield 2.39%.
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