SPX 30-Minute Chart 8/34 MA Cross Falling Wedge Sideways Symmetrical Triangle Gap Potential Island Reversal

The 30-minute shows a close-up of the falling wedge in play. Price pauses at the top trend line not yet willing to break out to the upside. The 8 MA remains under the 34 MA signaling bearish markets for the hours ahead, however, the moving averages are moving in on each other for a decision today. Either the SPX falls, sending the 8 MA lower again to guarantee a further bear path ahead, or, the bulls will show up driving the 8 up through the 34 to signal bullish markets ahead. The 8/34 cross is a key market metric today. S&P futures are weak this morning, -7 at this writing, so drama at the 1691-1692 support may be on tap.

Price gapped-up from 1688 to 1691 creating an island and price continues to sit on this island. If the SPX drops to test 1691, and collapses to 1688 and lower in a heartbeat, an island reversal pattern will occur. Price may also simply leak lower and fill the 1688-1691 gap. The bounce at yesterday's opening bell was telegraphed by the positive divergence. The action all day yesterday, however, results in a sideways vibe now with the brown sideways symmetrical triangle in play. Note the sideways nature of the indicators as well. The money flow and RSI are one single hair above the 50% levels giving the bulls a nod. Price can move into the apex of the brown triangle today if it moves through a range of 1694-1698 but a decision has to be made within a few hours. The brown triangle says markets must decide up or down either later this afternoon before the closing bell, or on Monday morning. Obviously, the CR deadline gels with this scenario creating drama for the days ahead. The stakes are high since the vertical side of the triangle is 11 or 12 points, thus, either price is going to explode to 1710-1711 and higher (1698 break-out + 12) or collapse to 1682-1683 (1694 collapse - 12).

Markets would likely deteriorate if the strong 1691 gives way, this is also last week's low. The 200 EMA on the 60-minute chart is 1685, another key bull-bear line in the sand. The collapse lower out of the brown triangle would send price lower to test the 200 EMA. Markets are set to open lower so watch the interplay through the triangle and most importantly the 8/34 cross since this tells you who is winning. 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.

SPX 1-Hour Chart 200 EMA Cross Bands Tightening Gap Potential Island Reversal

The bulls are not concerned as long as the SPX stays above the 200 EMA on the 60-minute at 1685. Bad things will happen to equities when price falls under the 200 EMA. The price action is in a falling wedge pattern with positive divergence so the bulls have a slight edge, however, the RSI never reached oversold levels and the RSI, stochastics and money flow all remain in negative territory under 50%. Price may want to continue along honoring the boundaries of the falling wedge. Note that this would create a showdown for Monday with price at the critical 1688-1691 gap, ready to make a decision, as the CR deadline occurs, resulting in either a violent rocket launch higher, or collapse lower. Therefore, today's action, Friday, may be soft and sideways as the politico's set the stage for Monday theatrics.

The standard deviation bands are tightening and just squeezed out the big up white candlestick 7 hours ago and should create a larger jump with the timing matching the above description, today or Monday. Price gapped-up mid-month so a potential island reversal is on tap where price would collapse from 1691 back down through the gap to print 1688 and lower quickly. That would set up a test of the critical 200 EMA at 1685 where a major market decision is made. Note the prior jumps out of the tight bands. Price typically leaps to the outer band in a heartbeat so the big move likely in the hours ahead will either have the SPX at 1710+ or 1685- with one side happy and the other sad. The indicators are not tipping their hand moving more in a sideways vibe now. Watch to see if the SPX can print higher, at 1700+, which would constitute a break-out of the trend line and higher numbers coming, or, a breakdown at 1691-1692, which is the top of the gap, very strong horizontal support, and last week's low. Bulls are okay as long as the SPX stays above the 200 EMA at 1685. Bears take over firm market control moving forward at sub 1685. 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.

CPC and CPCE Put/Call Ratio's Daily Charts Signal Significant Market Top

The low put/calls signal a significant market top at hand. About one week ago the markets topped and rolled over, but today a relief bounce occurs. The complacency and lack of fear is verified by the charts above. The put/calls collapse to the lows from a couple weeks ago locking in another market top within the next few days. Everyone knows the drill by now. If you do not have downside protection, get some. Longs can be exited and staying in cash for the next couple weeks is a prudent strategy for those that only prefer to play the market from the long side. Other options are inverse ETF's to play the market downside or buying puts or other advanced strategies. Any long that you are not willing to hold for say one or two years or more into the future, should likely be exited.

Prior analysis for the CPC and CPCE can be studied by typing 'CPC' in the search box at the right and bring up prior articles. The charts clearly show traders completely unconcerned about any negativity these days, even in light of the pending CR deadline now only 4 days away, 2 trading days. Traders are convinced that politicians will kick the can down the road, and the government will keep spending money they do not have, so there is no need to worry. The days ahead may be very epic in stock market history. Projection is for a substantial market sell off to begin at any day forward over the next week or two. The long traders must understand what fear is in the weeks ahead since they now have it far too easy for far too long, lounging around, wearing rose-colored glasses and drinking booze at lunch time. The panic and fear side of the spectrum will not be as pleasant. 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.

Keystone's Morning Wake-Up and Midday Market Action 9/26/13

The bears are given an open door for the last two days but unable to walk through. If the bears do not plan on running with the ball, the bulls will take the ball and run the other way. If GTX, commodities, move above 4888, now at 4856, more bull fuel will send equities higher well up over 1700. On the bear side, four parameters are in play; UTIL 485.33, XLF 20.01, VIX 14.67 and JJC 40.00. The bears keep teasing at these levels, but fail to move through any of them. If 1 of the 4 levels are crossed, a lid is placed on any additional equity upside. Keybot the Quant is long but if 2 of the 4 turn bearish, and the SPX drops under 1692, and stays under, the algo will likely flip to the short side.

For the SPX today starting at 1693, the bears only need one-point lower, to drop under 1692 and that will accelerate a move into the mid 1680's. The bulls need to touch the 1702 handle and the upside will launch to 1710 in quick order. A move through 1693-1701 is sideways action. VIX remains low and CPC and CPCE put/call ratio's remain low signaling a lack of fear and complacency continuing. Traders are unconcerned with the political theatrics increasing each day. Everyone knows the can will be kicked down the road and the CR will be agreed to on Monday evening so there is no need to worry. This set-up hints that the risk is more to the downside than the upside.

Q2 GDP is in line at 2.5%. Pending Home Sales are 10 AM so markets may take a stutter step although this data is not typically a market mover. Natty Gas Inventories 10:30 AM. Kansas City Fed Mfg Index at 11 AM. Fed's Stein, Kocherlakota and George are out speaking and spinning today. The 7-Year Note Auction is 1 PM. NKE earnings are after the bell. S&P futures are +4.50 so watch the five parameters listed in the first paragraph to see which market direction is favored. The 10-year yield is 2.65%. HTZ drives off a cliff -9% pre-market. If cars are not rented, business people are not traveling to see customers and folks are not taking vacations. European markets are mixed with Italy's political drama heating up again.

Today, 9/26/13, is a target date for Keystone's Eclipse Indicator. Today and 11/26/13 are identified as two dates, +/- a couple weeks, that are susceptible to a major market sell off. This eclectic indicator has a very reliable track record. So the current window is now through 10/10/13, and then the next window 11/12/13 through 12/10/13. The entire range is susceptible to market selling but the two windows are typically where a turn down would occur. Interestingly  so far, the markets have created a near-term top and several day minor sell-off. If the first window, now, results in a strong pull back, the second window will typically not be applicable. But if the markets do not sell off significantly over the next two weeks, the window in late November and early December will gain importance.

Since the markets are down 5 days in a row, talking heads say equities are oversold. Wrong. No where near there. The SPX daily chart shows that the RSI and stochastics have not even dropped below the 50% levels yet let alone be oversold. A relief bounce is a reasonable expectation but the daily charts show weak and bleak indicators that likely need to see lower lows with prices in the days ahead after any market bounce would occur. A move to test 1710 resistance would not be unreasonable. The 8 MA is under the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead, however, the bulls are going to try and create a positive 8/34 cross today. Watch the 8/34 closely as well as GTX 4888, UTIL 485.33, XLF 20.01, VIX 14.67 and JJC 40.00 to determine market direction. Bulls win today with SPX 1702 while bears win sub 1692.

Note Added 11:16 AM: GTX 4869 less than 20 bucks from 4888. UTIL 485.56 pennies from 485.33. XLF 20.11. VIX 14.35. JJC 40.53. TRIN 1.09. SPX touched 1702 so price popped to HOD at 1703.85, more would have been expected, now at 1694.14. Speaker Boehner's comments on the president needing to negotiate appear to have dampened today's mood. The main drama is around the GTX 4888 and UTIL 485.33. Bulls need GTX, bears need UTIL.  UTIL 485.43.... 10 more cents and the utilities will create broad market weakness.

Note Added 11:22 AM: High drama. UTIL 485.39...... bears need 6 pennies and they place a lid on the market upside.

Note Added 3:30 PM: UTIL failed at 485.33 which will place a lid on any further equity market upside. The second number for UTIL to watch is the 50-week MA at 483.55. This failure will cause additional market weakness. Ditto XLF 20.01 now at 20.04 three pennies from failure. Keybot the Quant is long. If either UTIL 483.55 or XLF 20.01 fails, and SPX drops under 1692, Keybot will likely flip short before the closing bell. Also watch GTX 4888. Price is sneaking up to the 4888 and this will be a feather in the bulls cap that will allow markets to stay elevated. This is high drama into the closing bell. Watch UTIL 485.33, 483.55, XLF 20.01 and GTX 4888. Bears win with either UTIL 483.55 or XLF 20.01. Bulls win with either UTIL 485.33 or GTX 4888.

Note Added 3:51 PM: UTIL 484.40 creating bearishness under 485.33 but creating bullishness above 483.55. XLF 20.09. GTX 4881. Equities stumble sideways. Utilities become important again. Bulls are gunning for a plus-485.33 close since it places a lid on the upside along with GTX 4888 and bulls must bust up through one or both of these levels to send the SPX 1700+.

Note Added 4:01 PM:  Numbers are still settling but UTIL ends at 485.36, three cents on the bull side. Amazing how Keybot identifies the numbers ahead of time. The bulls squeeze out a 3 cent victory if the 485.36 is final. The pivot in UTIL tomorrow morning, up or down, will likely take equities up or down in the same direction. XLF hangs on and refuses to fail at 20.01.

Keystone's Midday Market Action 9/25/13; New Home Sales

Financials, copper and volatility are the key metrics affecting market direction currently; XLF 20.01, JJC 39.99 and VIX 14.67. All three are bullish, but the XLF sits directly on the bull-bear line and copper is only pennies away. Copper is up in early trading. As XLF goes today, so goes the markets. XLF is up a nickel in pre-market moving towards 20.06. This would keep the bulls in business and buoyancy in equities. Bears need to flip at least one of the three parameters negative to create broad market selling. Keybot the Quant remains bullish. If XLF drops under 20.01, JJC under 39.99, and SPX under 1695, and they all hold under, the algo will likely flip to the short side. The 8 MA is under the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead. The bulls need a gap-up open, or at least a strong open, to send the 8 MA higher to create a positive 8/34 cross and take over control for the near-term.

For the SPX starting at 1697, the bulls need to touch the 1708 handle and an upside acceleration will occur. Bears need to push under 1695 to create a downward acceleration to test 1691-1692 immediately, as highlighted in this morning's charts. A move through 1698-1707 is sideways action today. The SPX has two potential gap fills needed at 1672-1674 and 1688-1691. The 20-day MA is 1675.77 and needs to be back kissed as well as the 50-day MA at 1679.44. Last week's low print was 1691.70. The SPX violated the upper standard deviation band on the daily chart so a move back to the middle band, at 1676-ish, is a reasonable expectation moving forward. For today, watch XLF 20.01 for all the marbles. Also JJC 39.99, VIX 14.67 and SPX 1708 and 1695. Also the 8/34 MA cross on the 30-minute. These factors will steer the market ship today. New Home Sales will create a market pivot point at 10 AM. Oil Inventories are 10:30 AM. 5-Year Note Auction is 1 PM.

Note Added 9:18 AM:  Secretary Lew says the government will run out of funds by 10/17/13 tightening the schedule for the ongoing political theatrics. Futures are flat. XLF is 20.05 pre-market so this should maintain market buoyancy to begin the day.

Note Added 10:36 AM:  XLF failed under 20.01 after the opening bell but recovered. Volatility moves higher which creates the slight market weakness but remains under 14.67. Despite the slightly negative indexes, XLF, JJC and VIX all remain in the bull camp so the SPX stays buoyant. TRIN 1.02 dead neutral unable to choose a side yet today. SPX LOD is 1691.97 testing last week's low, the top of the 1688-1691 gap and the strong 1691 support, and bounced. Equities stumble sideways. XLF 20.08. JJC 40.17. VIX 14.13. Bulls are not concerned since financials, copper and volatility remain bullish.

Note Added 11:16 AM:  XLF 20.10. JJC 40.22. VIX 14.07. TRIN 0.90. SPX 1698. The bulls keep cruising and Senator Cruz keeps cruising with the filibuster. The 10-year yield is 2.64%. Keystone took profits on the NUGT long trade exiting the position. Will look to reenter, it is a wild, roller coaster, psychotic ticker. Also bot URA, the uranium ETF, a dangerous and speculative play since nobody like's nuke power, opening a new long position. When the word nuclear is mentioned, everyone says NIMBY! and BANANA! acronyms for 'not in my back yard' and 'build absolutely nothing anywhere not anytime'. The URA weekly and daily charts are set up with attractive positive divergence so the risk-reward is favorable for a bounce to occur at any time but it is thinly-traded. Also bot SSG, the inverse 2X ETF that moves up if semiconductors (SOX and SMH) move down, opening a new long position.

Note Added 3:14 PM:  XLF 20.15.  JJC 40.17. VIX 13.93. TRIN 0.97. SPX 1697. The beat goes on. Markets stumble sideways with upward bouyancy since financials, copper and volatility continue to enjoy the bull camp. Interestingly, the 8 MA remains under the 34 MA on the 30-minute signaling bearish markets for the hours ahead. Markets continue to tap dance to and fro along an indecisive tight rope.

Note Added 4:01 PM: Sideways indecision. XLF, JJC, VIX and the 8/34 MA cross on the SPX 30-minute are all where they were when the day started. SPX closes just above the critical 1691-1692 support discussed in this morning's chart. The 10-year yield is 2.62%.

SPX 30-Minute Chart 8/34 MA Cross Downward-Sloping Channel H&S Pattern Gap

The 8 MA is under the 34 MA signaling bearish markets for the hours ahead, however, high drama played out yesterday afternoon. The bulls were ready to thrust the 8 above the 34 to signal victory ahead in the final hour yesterday but the bears flushed the SPX to the downside and curled the 8 MA lower again. The opening bell is critical today since the bulls need to show up with a gap-up open or at least a strong open to send the 8 MA higher and reverse the market negativity. Otherwise, the bears will press lower with the negative 8/34 cross continuing. The chart is not tipping its hand moving forward but is leaning to the bear side. The downward-sloping channel is in play with price rejected at the top rail yesterday early afternoon. The lower rail of the channel intersects the important 1691 support level, which is also at the 1688-1691 gap fill. The 1692 level is last week's low so this confluence at 1691-1692 may act as a magnet to pull price lower for a test. An island reversal pattern occurs if price moves lower to 1691 then collapses to 1688 back down through the gap. Price may also choose to simply leak lower and fill the 1688-1691 gap.

The dark green lines show an H&S in play with a head at 1730, neck at 1697, and target at 1664 if the 1697 neck line fails. The stochastics are slipping under 50% into bear territory. Projection is for price to continue moving through the brown channel with a downward bias. Bulls got nothing unless they can create a positive 8/34 cross. Bears remain in control of the markets in the near-term (hours) as long as the 8 stays under the 34. 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.

SPX Daily Chart Upward-Sloping Channel Upper Band Violation Tweezer Top Potential Island Reversal

The tweezer top (blue circle) played out as highlighted in the chart four days ago. The top was identified by the tweezer (two long upper shadows on the two peak candlesticks hinting at a trend change on tap), the top rail of the channel and the upper standard deviation band violation. So, to use a baseball metaphor as the playoff season approaches, 'three strikes and yer out'. Since the move back from the upper band violation has begun, price would be expected to tag the middle band, also the 20-day MA at 1675.77, at a minimum, with a potential move to the lower band in play as the weeks play out as well.

The maroon circles show two juicy gaps that will likely need filled; 1672-1674 and 1688-1691. Note how price has buttoned up the top side as it moves lower not leaving any gaps behind. The neon green line is very strong support at 1691, also where the gap is at and also last week's low at 1692. Considering the gap and other criteria, price sits on an island at 1691+ so a potential island reversal is in play where price would stumble lower to 1691-1692, and then collapse in a heartbeat to 1688 falling back through the gap.

The red lines show negative divergence in place and the indicators are sloped strongly negative moving forward, weak and bleak, and likely desire lower prices even after any bounce occurs. Watch to see if the RSI turns bearish under the 50% level. Projection in the near-term is a move to 1688-1691 and then a test of the 20-day MA. A recovery move is in play to 1710-1722 but this should result in further roll over with price seeking the 20-day MA, the gap fills, and potentially lower. Projection is sideways to sideways lower for the days and weeks ahead. 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.

XLF Financials Weekly Chart Upward-Sloping Channel H&S Pattern Price Extended Gravestone Doji

Financials are key today. Keystone's algo, Keybot the Quant, identifies the sectors and other market areas that are most affecting market direction in real-time. Right now financials is the most important with copper and volatility important as well. The algo identifies XLF 20.01, exactly where price begins the day, as the bull-bear line in the sand. Equities should move in the same direction as financials at the opening bell. If XLF moves higher, markets move higher. If XLF moves lower, markets move lower.

The green upward-sloping channel remains in play with price dropping under the bottom rail and back kissing yesterday. Note the gravestone doji candlestick last week which usually indicates a trend change, but this week would be needed to show a down candlestick to confirm the trend change. The blue dots show the price extensions. At the late 2011 bottom, price was under the 20 MA under the 50 under the 200 so a reversion to the mean was needed and the financials recovered to print a 2-year rally. Price is now extended to the top side and need a reversion lower. Note that all four of the reversions over the last year result in at least a one-point or more pull back. Therefore, price should be expected to test 18.50 as September moves into October.

The brown lines show a head and shoulders (H&S) pattern in play with head at 21, neck line at 18.5 and target at 16 if the 18.5 level fails. The 19 level can be used as a neck line as well which would target the support level at 17. The blue box for the ADX shows a strong trend in progress for financials this year with the black line moving above 25 and staying above, but, alas, the strong upside trend party is over. The red lines show the negative divergence spank down highlighted over the last couple months. Keystone has been looking for a rolling top by financials over the last few months and it remains a bone-head call but perhaps price will finally explore lower levels. The daily chart would actually be content with a short few-day bounce in the XLF but the weak and bleak outlook of the weekly chart indicators show that lower prices are desired after any bounce would occur. Projection is for sideways to sideways lower for the weeks and months to come.

For the near-term, today, XLF 20.01 is high drama. As XLF goes today, so goes the markets. 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.

Keystone's Morning Wake-Up and Midday Market Action 9/24/13; Consumer Confidence

Volatility, copper and financials hold the key to broad market direction today; VIX 14.67, JJC 39.97 and XLF 20.00, respectively. All three are creating bullishness so any move to the bear camp will create equity selling. The degree of selling would increase if more than one parameter flips. If all three remain bullish, equities will float higher. If the GTX moves above 4888, the bulls will receive additional bull fuel. GTX is 4854 creating bearishness in markets. VIX 14.67 is very important today as well as the 200-day MA at 14.48 described in this morning's chart. Copper is down about -1.1% in early trading which will send the JJC to about 40.10 or 40.20 nearing the 39.97 bull-bear danger line after the opening bell.

For the SPX starting at 1702, bears need five points lower, to push under 1697 and a flush move will occur in short order taking price to a test of the strong 1691 support. The previous week's low is 1691.70 which would signal trouble for markets if it fails. Bulls need to push above 1711 to regain upside mojo and accelerate the broad indexes higher. A move through 1698-1710 is sideways action today. The 8 MA is under the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours ahead, however, the 8 MA is curling upwards. Bears will need to push the SPX lower and under 1697 today to sustain the downside by keeping the 8 under the 34.

Housing numbers are on tap this morning. Fed's Pianalto speaks at 8:30 AM and George (she is the uber hawk) speaks at 12:30 PM so more Fed spin is on tap today to keep everyone dizzy. The CR deadline drama, for funding the U.S. government, is heating up with six days remaining. Senate Leader Reid says the House bill, that approves 99.9% of government funding, but defunds Obamacare, is dead on arrival. The political clown games intensify each day. Consumer Confidence, a key monthly indicator, is released at 10 AM and will create a market pivot point. So the way the indexes move during the first one-half hour of trading may or may not continue from the 10 AM pivot forward. The 2-Year Note Auction is 1 PM and this is important in relation to the 2-10 spread. KBH and LEN earnings are imminent which will also move the housing sector along with the economic data. VIX 14.67, JJC 39.97, XLF 20.00 and SPX 1711 and 1697 dictate market direction today. Use the VIX chart in the prior post to verify which side is winning.

Note Added 3:12 PM:  Market bears had the brass ring in their sights this morning but slipped on a banana peel falling short. Copper collapsed at the open with JJC dropping under 39.99 and VIX popped towards 14.67 and XLF down to 20.00. Very little effort was needed to push it all over the hill and begin the downside in force, but, alas, VIX collapsed under 14, XLF moved up and away from 20.00, and JJC is above 39.99. The bears could not get the job done. That is why even though the SPX ruptured the 1697 level, price did not have a lot of downside juice due to lower volatility. TRIN 1.08 a hair negative. Big-time drama right now with the 8/34 MA cross on the SPX 30-minute chart. The 8 remains under the 34 favoring bears but is about to cross up through favoring bulls. The bears must drive the SPX lower in quick order, before the closing bell, down hard, to maintain downside control. If not, the bulls are going to start running markets higher. Watch JJC 39.99, VIX 14.67 and XLF 20.00. Current prints are JJC 40.09, VIX 13.90 and XLF 20.12 all three causing bullishness.

Note Added 3:40 PM:  JJC 40.04. VIX 14.07. XLF 20.05. The bears fell asleep this morning but are waking up into the close. SPX is dropping this will keep the 8 MA under the 34 MA and keep the markets weak for the hours ahead. SPX is at 1699.86. Bears will receive downside fuel if they turn one of the three parameters negative. Bulls will hang on fine if they keep all three bullish.

Note Added 3:47 PM:  The tension mounts. Bears are given a second try today. JJC 40.02. VIX 14.10. XLF 20.03. Copper and financials only a couple pennies from causing market mayhem. Can the bears do it on their second chance today?

Note Added 4:05 PM: JJC parks at 40-ish and XLF at 20-ish as identified by good ole Keybot ahead of time. With both of these key metrics sitting on their inflection points at JJC 39.99 and XLF 20.00, a critical up or down market decision will occur at tomorrow's open. VIX is 14.10 near its 14.67 line in the sand as well. To pile on more drama, the 8 MA is under the 34 MA on the 30-minute chart signaling bearish markets for the hours ahead, however, a gap up open tomorrow would place the bulls in the driver's seat, so this indicator is at an inflection as well. Rest up. Tomorrow's open is important and the broad indexes should make a commitment after the bell that will have a bit of staying power. Copper trading overnight will provide the answer. CY is bludgeoned -15% AH's. This is key since it tells you semiconductors are sick, a key component of the global economy.

VIX Volatility Daily Chart

VIX pops +9% yesterday. Up VIX means down equities and down VIX means up equities. The volatility chart is set up as an attractive tool to gauge market direction for the days ahead. The indicators have an overall sideways vibe for the last couple months or so and this is verified as the moving averages line out sideways. Use the MA's as a bracket identifying a sideways channel with the 20-day MA at 15.09 as the top rail and the 50-day MA at 14.09 as the bottom rail. Market bulls win below 14.09 and bears win above 15.09.

The 200-day MA at 14.48 is a key market metric since bad things happen to equity markets when the VIX moves above the 200-day MA, now only 17 pennies away with price actually piercing the 200-day during Monday's session. Thus, the position of VIX above or below the 200 is the first indication to monitor, then watch to see if the outer range of the moving averages are violated to verify the direction chosen. Currently, the VIX is under the 200, so bulls are happy, but they still need to drop under 14.09 to signal the all-clear for broad market upside. Bears need the VIX to move above the 200-day MA and then above 15.09 to pop the champagne corks as markets sell off.

The thick red line is 14.67 which is Keybot the Quant's level of importance. The algo continuously calculates areas and levels of interest that have the greatest affect on market direction in real-time and VIX 14.67 is at the top of the list today. VIX is under 14.67 so it is causing bullishness in equities currently. Following the above description will verify market direction today. Projection is for VIX to move higher in the days and weeks ahead, and, considering the CR deadline is now only 6 days away, it is reasonable to expect fear to increase and volatility to rise. 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.