VIX Volatility and SPX S&P 500 5-Minute Charts; Bulls and Bears Battle at the VIX 200-Day MA

The VIX 200-day MA is at the 17.04-17.07 level and decides whether the stock market is in a short-term bull or bear market. Do you think the 200-day moving average is important? Look at the charts.

The VIX makes a bee-line for this critical demarcation level after the opening bell for the regular session at 9:30 AM EST (the VIX actually begins trading at 3 AM EST). The VIX bounces on this first test of the 200 support so stocks retreat after the gap-up opening.

The VIX then rolls over again. At this point, the bears are feeling good that the 200-day MA support held. Bears win above the 200-day while bulls win below the 200-day. The VIX tests the critical 17.04-17.07 level again, bounces along, then whoosh (green circle). At 12:45 PM EST, the central banker's jack boots step on the throat of volatility driving stocks higher.

They jammed vol lower at the start of the fourth trading segment. Each day is split into six 65-minute segments beginning at the following times; 9:30 AM EST, 10:35 AM, 11:40 AM, 12:45 PM, 1:50 PM and 2:55 PM. Vol was jammed lower exactly at the start of the fourth segment; the trading robots step-in buying big blocks and the SPX pops.The trading volume today, however, was pathetic (little conviction for the upside). 

The bulls are in clover as long as the VIX remains below the 200-day MA. You have to give it a day or two to see if price is fully committed, or not. Note how at the end of the day the SPX fell out if its joyous upside channel. The VIX, however, remains subdued and inside its downward-sloping channel, so stocks would be expected to remain buoyant. S&P futures are down -5 on Monday evening East Coast time.

VIX 17.04-17.07 tells the market directional story ahead; keep watching volatility. Other than that, its just another day in the rigged and corrupt markets. 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 on Tuesday Morning, 8/20/19, at 4:08 AM EST: The VIX is trading for about one hour and sits at 16.79 down slightly. The bulls dance with glee. S&P futures are up +4. Bears have zero hope unless the VIX climbs back above the 17.04-17.07 level.

Note Added on Tuesday Morning, 8/20/19, at 8:32 AM EST: VIX 16.74. S&P futures +3.