VIX Volatility Daily Chart

The VIX fell below the critical 200-day MA at 16.96, which separates short-term bulls from short-term bears, so the bulls are celebrating throwing confetti while drinking Fed champagne and PBOC rice wine all weekend long. The central bankers maintain their jackboots on the throat of volatility to send stocks higher.

Keybot the Quant, Keystone's proprietary trading algorithm, remains long and identifies 15.74 as the key bull-bear line in the sand (thick blue line). On Friday, the VIX falls below the critical 15.74 so it is lights-out for the bears.

Bulls will send the stock market higher and higher, above SPX 3K, if the VIX remains below 15.74 and dropping. A 14-handle prints on Friday so bulls need to print more 14 and 13-handles and the S&P 500 will quickly be at new all-time record highs. Bears need to push the VIX above 15.74 to immediately stop the stock market rally. Bears then need to push the VIX above the 200-day MA at 16.96 to pave the way for a market bloodbath.

The US 10-year auction is on Wednesday. The PPI and CPI inflation data hit on Wednesday and Thursday, respectively. Retail Sales, Business Inventories and the very important Consumer Sentiment drop on Friday the 13th. Pay attention to VIX 15.74 since it tells you the direction ahead for the US stock market. Tuesday is a palindrome, 9/10/19; 91019. All the September teen numbers 9/10/19 thru 9/19/19 are palindromes. 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 Monday Morning, 9/9/19, at 6:47 AM EST: VIX 15.23. S&P futures +7. Both futures and volatility are higher so one of them is wrong.

Note Added Monday Morning, 9/9/19, at 9:03 AM EST: VIX 14.96. S&P futures +10. The VIX turns negative on the session sporting a 14-handle. The futures were correct and volatility wrong. The bulls cheer.

Note Added Monday Morning, 9/9/19, at 9:35 AM EST: VIX 15.29. The S&P 500 is up 5 points, +0.2%, to 2983. Both volatility and the SPX are higher so one of them is wrong. Copper is down -0.4%. The week is off and stumbling.

Note Added Monday Morning, 9/9/19, at 9:35 AM EST: VIX 15.20. The SPX is up 3 points to 2982. Both volatility and the stock market remain positive on the session so one of them is wrong. The SPX 2-hour chart is hinting that it is topping out.