VIX Volatility Daily Chart; VIX Battling at the 200-Day MA Bull-Bear Line in the Sand

Volatility pops so stocks drop. The VIX jumps above the critical 200-day MA which is a key short-term bull-bear market signal. The 200-day MA sits at the infamous 16.66 level. The SPX sports its own '666' sitting at 2966.60. It does not get more simple than this. Bulls win big if the VIX drops below 16.66. Bears win big if the VIX remains above 16.66. You will likely see a back kiss, and bounce or die decision, at 16.66 today.

Keybot the Quant algorithm remains short. The quant currently identifies VIX 15.90 as a key bull-bear line in the sand. This is why the stock market tanked yesterday once the VIX shot above 15.90.

Thus, bears will keep sending equities lower and lower as long as the VIX remains above 16.66. The stock market will chop sideways with a slight downward bias if the VIX bounces between 15.90 and 16.66. Bulls will rejoice and sing happy songs if the VIX drops below 15.90 since stocks will be rallying strongly. The VIX is currently trading at 17.43 with S&P futures down -4 about 2-1/2 hours before the opening bell for the regular hump day trading session. 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 Thursday Morning, 9/26/19, at 10:26 AM EST: The stock market is open for about an hour with the SPX down 12 points, -0.4%, to 2972. VIX 16.79. The bears are winning. The 200-day MA is at 16.60. The bounce or die decision today from this VIX 16.60-ish level determines stock market direction ahead.

Note Added Friday Morning, 9/27/19, at 5:27 AM EST: The stock market will open in four hours. The VIX drops to 15.70 so S&P futures pop +7. The battle continues. Bears could not hold the 200-day MA and now lost the critical VIX 15.88 bull-bear level called out by the Keybot the Quant algorithm. Bulls win below VIX 15.88 while bears win above VIX 15.88.

Note Added Saturday Morning, 9/28/19: The VIX catapults higher to 17.22 and the SPX drops 16 points, -0.5%, to 2962. The stock market is a bucking bronco tossing around bulls and bears alike. Comically, if you do not like the stock market direction, simply wait a day since it will be going the other way.