VIX Volatility Daily Chart

The Keystone Speculator's VIX 200-Day MA Short-Term Bull-Bear Indicator continues favoring the bulls. The stock market drops in early September as the VIX jumps above the 200-day MA (red circle). The bulls battle back creating a bottom in stocks and a rally where the VIX takes out the 200 to the downside (green circle). Bulls throw confetti as they sip Fed wine and ECB champagne. The bulls are walking on sunshine. 

The VIX comes back up in recent days for a back test of the 200, and price receives a two-day spankdown from this key moving average resistance level creating the upside in stocks the last couple days. Obviously, the VIX 200-day MA at 29.33 is a key stock market metric going forward.

The Keybot the Quant algorithm is on the long side. The quant is tracking VIX 27.46 as the key bull-bear line in the sand (thick red line in right margin). The algo expects stocks to become soggy once the VIX crosses above 27.46.

Thus, the table is set. If VIX remains below 27.46, now at 26.38, the bulls are in control of the stock market. If the VIX moves above 27.46, there will be notable selling pressure in the stock market; downward or a sideways choppy behavior with a downward bias would be expected. If VIX moves above 29.33, the wheels fall off the stock market bus. Stocks will be tumbling lower in earnest. The VIX begins trading at 3 AM EST. 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 Tuesday Morning, 9/29/20, at 5:54 AM EST: The Keybot the Quant algorithm is tracking VIX 27.17 as the bull-bear line in the sand. The VIX briefly tagged 27.19 yesterday and currently trades at 26.79. S&P futures are down -3. Bears need another 38 cents higher for the VIX before they can start chomping on bull flesh.