VIX Volatility Daily Chart

The VIX 200-day MA is an important signal line for markets. Market bears win above and bulls win below. The VIX pops above the 200-day MA at 14.71 placing a feather in the bear's cap (volatility moves inversely to the stock market).

Keybot the Quant algorithm is short and identifies VIX 15.81 as a key bull-bear level that will increase market negativity, thus, at 15.13, the bears have more work to do and the bulls can stage a comeback. If VIX moves above 15.81, equities will sell off in force. Bulls will be fine if they can push the VIX under 14.71. 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 11:38 AM:  The market bulls recover pushing VIX under the critical 200-day MA at 14.69-14.71. VIX is currently printing 14.28 at the lows of the day pushing stocks higher. Interestingly, copper and utilities remain weak and the SPX daily chart shows weak and bleak indicators, and a negative MACD cross, pointing to more downside. However, as always, the cental bankers are the market and it is funny how every time markets begin selling off a central banker meeting is at hand. ECB President Draghi is on deck tomorrow morning and is preparing a cape to wear as he enters the meeting. A large 'SM' is painted on his chest so superhero 'Super Mario' will try and save the day. Equities may trade choppy into the Beige Book this afternoon. Use the VIX 14.70-ish as your guide today. Bears got nothing until they push the VIX back above 14.70. Note that the SPX and Dow came down to test the 20-day MA's and bounced on the initial test of this support. Watch the SPX 20-day MA at 2090.68. LOD is 2087.62 teasing failure at the 20-day support but price recovers. The downside will accelerate if the 20-day fails.

Note Added 1:12 PM: VIX 14.34. SPX 2098.47.

Note Added 2:30 PM: VIX 14.63. SPX 2095.56. Weakness occurs in markets going into the Beige Book data. The VIX 200-day MA is 14.70 so the bears are trying to make a run again but bears got nothing unless VIX moves above 14.70.

Note Added 9:31 AM on Friday morning, 3/6/15: The Monthly Jobs Report sends stocks lower. The party continues with the chart above. The VIX jumps ot 14.64. The 200-day MA is 14.72. If the VIX moives above 14.72 and stays above, the market bears will win today. If the VIX is unable to move above 14.72 then the stock market will recover today. Use this as your Friday guide to market direction.