VIX Volatility Daily Chart

The 200-day MA is at 13.54 and is a key S/R line in the sand for volatility and a great predictor of market direction. If you are long the stock market, you want the VIX to be under the 200-day MA. If you are short the market, you want the VIX to be above the 200-day MA.

VIX 12.38 is another important line in the sand identified by the Keybot the Quant algorithm. So with the VIX above both 12.38 and 13.54, the bears are on easy street as the stock market sells off. Bulls can stall and even stop the market downside if VIX drops under the 200-day MA at 13.54. Bulls got nothing unless they can push volatility lower. VIX is at 13.92. Bears will create more market selling if VIX moves above 14 and higher. Watch VIX 13.54 and VIX 12.38 to gauge market direction. 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 11:03 AM on Tuesday, 9/23/14: The VIX is at 14.20 with a HOD at 14.83 levels not seen since early August.

Note Added 9:20 PM on Thursday, 9/25/14: The VIX closes at 15.64 after printing a HOD at 16.69. The SPX pukes 32 points today, -1.6%, down to 1966.