VIX Volatility Daily Chart; Battle at the 200-Day MA

Market bulls win below the VIX 200-day while bears win above. The 200-day MA is at 11.97. The VIX is at 12.05 so the bears are winning buy 8 pennies. The 3-day selloff gathered steam as soon as price poked up through the 200 (red circle). The battle continues and it is unclear who will win.

The blue bar is the 11.32 level called out by the Keybot the Quant algorithm. The algo treats this number as the key bull-bear line in the sand where bears win above 11.32 and bulls win below.

Thus, if VIX is above 11.97 and heading higher, the bears will be growling and sending stocks strongly lower. If the VIX is between 11.32 and 11.97, stocks will stagger sideways with a downside bias. If the VIX drops below 11.32, the bulls will be throwing confetti as the stock market rallies to new highs again. Which outcome will win? 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 12:22 PM EST: The VIX eases lower to 11.90 so the bulls cheer. The beat goes on. The SPX, INDU (DJI) and COMPQ are trading dead flat. The RUT small caps sink -0.6%.