VIX Volatility Daily Chart

Keystone must rub his eyes this morning. An astonishing sight occurs. The VIX has a 12-handle printing at 12.06 creating weak S&P futures a couple hours before the opening bell. A VIX at 12 remains subdued and bull-friendly but it is now off the uber low 10-11 numbers and it even printed a 9-handle very briefly a week or so ago.

The red circles show when the bears control the stock market, above the 200-day MA, and the green circles show the bulls in full control, like now, with the VIX under the 200-day MA. Market bulls celebrate each day drinking Fed champagne and Trump wine completely unconcerned about a market selloff.

Watch two levels in the coming days. VIX 13.17 is identified by the Keybot the Quant algorithm as a key bull-bear line in the sand. VIX 13.90 is the 20-day MA. If the VIX moves above 13.17, stocks will be tumbling lower. If VIX  moves above 13.90, the stock market will be dropping like a rock. If VIX slips back below 12, the bulls will laugh at the hapless bears as the stock market moves higher again. If the VIX remains between 12.00 and 13.17, the stock market will float along sideways with a slight upward bias. 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 8 PM EST Friday Evening 2/17/17: The VIX finishes the week at 11.49; an 11-handle far under 12. The bulls slap the bears in the face. Slap, slap. Market bears need higher volatility otherwise they will be slapped around each and every day. Slap, slap.