VIX Volatility Daily Chart Signals Market Top

The central bankers are keeping the VIX beach ball under water with all their might, but, as always happens, the ball will slip through Chairman Bernanke's water-logged wrinkled finger tips and explode higher. The green circles show the significant recent market bottoms. All occur as the VIX moves above 18. Major multi-year bottoms typically occur when the VIX jumps above 30, 35 and higher. At these high levels, fear and panic are rampant with folks selling stocks like crazy since they drop day after day. Of course, at this time of fear and panic, with a VIX at +35, is the best time possible to buy stocks.

The red circles show the recent stock market tops that occur when the VIX drops under 12.5. VIX up means the stock market drops while VIX down means the stock market pops. The indicators are positively diverged and friendly for volatility bulls (stock market bears). Projection is for the VIX to recover and move higher in concert with equities moving lower. 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.