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

The battle at the VIX 200-day MA line in the sand at 11.15 continues. Note how price came down to kiss the 11.15 on Friday and bounced. This indicated that the market bulls did not have enough strength to take the stock market higher. The VIX is at 11.43.

The Keybot the Quant algorithm remains long and is tracking VIX 10.76 as the bull-bear line in the sand. Bulls win big below 10.76. Bears create stock market weakness above 10.76.

You can likely watch this chart this week and it will tell you what you need to know for market direction. If the VIX remains above 11.15, the market bears are celebrating as the stock market deteriorates lower. If the VIX drops below 11.15 and remains above 10.76, the bulls are winning the battle and you will see the stock market moving higher with a positive bias but not yet convincing on the upside. If the VIX drops below 10.76, bingo. The market bulls wil lthrow confetti as they watch the SPX catapult above 2600. 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 Wednesday Morning, 11/22/17: The bulls ram volatility lower with the VIX sporting a 9-handle so the stock market jumps higher the SPX prints above 2600 for the first time in history. Market bears need VIX above 10.65 to create selling. Bulls rule the stock market as long as VIX remains below 10.65.