VIX Volatility Daily Chart

On Thursday morning about one hour before the opening bell for the regular session, S&P futures are down about 10 points. VIX is currently trading at 12.70. You can use the VIX to gauge the strength of the downside move.

If stocks sell off but the VIX remains below the key 200-day MA at 14.25, the bears got nothing and stocks will rally off the lows and float higher. If stocks sell off and the VIX moves above 14.25 and remains above, the stock market will continues selling off and deteriorating.

The Keybot the Quant algo identifies the VIX 15.33 level as where the stock market will begin tumbling lower in earnest. 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.