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Thursday, August 15, 2013

VIX Volatilty Daily Chart 200-Day MA

The VIX 200-day MA is an important market signal. When the VIX is under the 200-day MA (green circles), in general, you want to be long the market and not short. When the VIX moves above the 200-day MA (red circles), you want to be short the market and not long. Look at where they closed it; on the line at 14.73. The 200-day MA is 14.72. So bulls and bears can sleep on it tonight. If the VIX stays above the 200-day MA, the bears will be eating honey all day long as equity markets tumble lower.

Keybot the Quant algorithm identifies key sectors and levels that are affecting markets. The thick brown line is the bull-bear line in the sand calculated by the algo. Thus, markets should maintain weakness if the VIX is above 14.21.  The bulls will push equities higher if the VIX drops under 14.21. So use the 14.72 and 14.21 levels as key indicators for the VIX that will in turn tell you how the broad indexes are moving to end the trading week. 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.

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