VIX Volatilty Daily Chart; Battle at the 200-Day MA Bull-Bear Line in the Sand

The 200-day MA is a very important short-term market signal. Bulls win below the 200 and bears win above the 200. It does not get any simpler than that. The VIX 200-day MA is at 11.84 and price is, wait for it........ wait for it a little bit longer....... 11.86 only 2 pennies above on the bear side. This line in the sand determines the path ahead for the stock market.

If the VIX fails under the 200-day at 11.84, and this morning it has spent time below this critical moving average, the market bulls will be happy but the bears have one last weapon in their quiver if this occurs. Keybot the Quant is on the short side currently and identifying VIX 11.39 as a key bull-bear line in the sand (blue bar). If the VIX drops under 11.39, bulls will be throwing confetti, singing songs and drinking booze to celebrate. Market bears remain strong as long as the VIX remains above 11.39. If the VIX remains above 11.84, then above 12 and higher, stocks will retreat off the highs. Easy-peasy. Watch VIX 11.84 to determine which way the stock market goes from here. 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 12:50 PM: The VIX is sitting at 11.87 unable to make up its mind. Which way will it break? VIX 11.89.........

Note Added Saturday, 8/26/17: The drama at the VIX 200-day MA at 11.72 continues. The VIX ends the week at 11.28 so the bulls cheer but there is likely lots more drama ahead. The VIX 200-day MA will tell you who wins going forward. The bears need to push VIX above 11.72 as soon as possible, otherwise, under 11.72, the bulls will stampede the bears and send the stock market higher.