Saturday, July 14, 2018

VIX Volatility Daily Chart; 200-Day MA Failure Creates Stock Market Joy

As a previous chart highlighted, the bulls and bears were fighting over the 200-day MA, now at 14.21, which determines if the stock market is in a short-term bull or bear market pattern. Six days ago, on Friday, 7/6/18, the bulls punched the bears in the face with the VIX slipping below the 200. A back test of this critically important moving average would be expected and it occurs three days later.

The VIX comes up for the back kiss of the 200 (blue circle) and has to decide to bounce or die. It died. The bulls punch the bears squarely in the face, the bears fall backwards landing on the dirty linoleum floor and are out like a light. The VIX drops so stocks pop. The LOD Friday the 13th is 11.62 not seen since early June and late January. Market bears got nothing unless they push the VIX above 14.21. Bulls are cruising with their feet up on the dashboard as long as the VIX remains below 14.21. 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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