The huge up day in the SPX yesterday results with the VIX dropping to 16.97 below the critical bull-bear dividing line at the 200-day MA at 17.02. Bulls win big below 17.02. Bears win big above 17.02. It's not rocket science. The VIX is currently trading at 16.666 about 3-1/2 hours before the opening bell on Wednesday morning. S&P futures pop +20 as volatility drops. 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 Sunday, 7/21/19: The above drama occurred about 6 weeks ago and volatility went straight lower during this subsequent period. Hence, the stock market catapults higher with the SPX printing new all-time record highs above 3K. The VIX is at 14.45 and the 200-day MA is at 17.31. The Keybot the Quant algorithm calls out 14.53 as a key bull-bear line in the sand. Thus, the stock market will fall apart if the VIX moves above 14.53. The wheels will fall off and stocks will be tumbling lower in earnest if the VIX moves above 17.31. The stock market is fine and will weather any near-term turbulence if the VIX remains below 14.53.
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