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Sunday, October 18, 2015

VIX Volatility Daily Chart 200-Day MA Cross

The VIX drops below the 200-day MA providing bull fuel for the stock market and signaling the all clear for bulilish markets ahead. Volatility moves inversely to the stock market so bulls want lower vol and bears want higher vol. The cross below the 200-day MA at 16.65 is a serious win for bulls and punch in the face to bears. Bears got nothing unless they can push the VIX back above 16.65.

The Keybot the Quant algorithm is tracking the 17.95 level as the bull-bear line in the sand. Thus, if VIX stays under 16.65, the bulls are on easy street sipping Fed wine and enjoying a robust stock market rally. Bears fight back and will stop the stock market rally and create selling pressure if VIX moves above 16.65. If VIX moves above 17.95, the stock market will drop like a stone. 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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