VIX Volatility Daily Chart

The broad indexes were all up yesterday--so was the VIX. One of them is wrong. The VIX and broad market SPX move inverse to each other; up VIX and down equities, or, down VIX and up equities. The VIX and SPX move in the same direction less than 10% of the time. So today we find out if the VIX was wrong, or the SPX was wrong. There are two key levels to watch. The red line at 15 is identified by Keystone's trading algo, Keybot the Quant, and if price falls under 15, the SPX is on its way to 1722, 1730 and new all-time highs. The market bears remain in the game as long as VIX 15 does not fail.

Another key market metric is the VIX 200-day MA. If the VIX is under the 200-day MA the broad indexes are moving higher and in full rally mode. If the VIX is above the 200-day, markets are in selling mode. Note that the VIX remains above the 200-day MA at 14.45 indicating that the bears are still in the game. The 14.45-15.00 level is a serious support guantlet. Bulls win big with new all-time market highs on the way at sub 14.45 but the bears will growl again with the VIX remaining above 15. 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.