VIX Volatility 15-Minute Chart; Battle at the VIX 200-Day MA Continues

The knock-down, drag-out, fight between bulls and bears continues all week long and Federal Reserve Chairman Powell enters the ring this morning to decide who wins. Powell will bring the tablets down from on high and tell global traders how to trade at 10 AM EST. Emperor Powell is in Jackson Hole, Wyoming, USA, with other crony central bankers colluding and communicating the next step in coordinated money-printing around the world. The wealthy elite class always protects itself above the common huddled masses.

The week began with that gap-down move in the VIX as the global central bankers place their jack boots on the throat of volatility. On Monday, the bulls push the VIX below the 200-day MA at 16.98-17.07 so equities are happy. The VIX moves inversely to the stock market (SPX) about 90% or more of the time. The bears battle back on Tuesday morning but the bulls slap them in the face again. The bears fight back again but then the gap-down move occurs on Wednesday morning the jack-booted central bankers crush volatility to pump stocks higher.

The bears were not giving up and jam the VIX higher on Thursday morning (yesterday) feeling proud that they are in control again. That did not last long as the bulls push the VIX below 17 again. The VIX is trading right now, three hours before the opening bell for the US trading session, at the short-term bullish, albeit ominous, 16.66 with S&P futures +6.

Of course the main event today is the Powell doctrine that will be laid out in the coming hours. The stock market wants to hear never-ending dovishness. It wants the global central bankers to keep printing money like madmen which inflates asset prices. This will give the privileged class time to exit lots of investments and let the huddled masses idiots hold the proverbial bag. This is the way the game is played.

Keep watching the VIX 200-day MA at 17; it tells you the stock market direction ahead. Bears win above 17 while bulls will keep choppy markets flat to buoyant between 15 and 17. Bulls will be celebrating record highs ahead if the VIX drops below 15. The beat goes on. Powell is at the free buffet right now wiping a jelly stain off his necktie. 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 at 8:09 AM EST: The VIX spikes above 18 now at 17.61-ish (bouncing around) above the 17 bull-bear demarcation line. The bears are dancing a jig of joy. China announces new tariffs against the United States so the US-China trade war deepens.

Note Added Saturday Morning, 8/24/19: The bears came to play on Friday aided by the deterioration of the US-China trade war. The VIX pops above 21 and settles for the week at 19.86. The SPX collapses 76 points, -2.6%, to 2847, in the Friday trade. LOD 2835.