VIX Volatility 1-Minute Chart; Ongoing Battle at 200-Day MA at 15.12

Soybean Donny sends stocks wildly higher this morning and early afternoon after promising that a US-China trade deal was imminent. The SPX shot-up almost 40 points higher intraday. The SPX prints a new all-time record high at 3176.28. The VIX falls below 15, below 14, and down to a 13 handle but then recovers as stocks recoil and come off the highs.

Do you think the 15.12-15.20 level is important that Keystone is talking about today? Look at the chart. The bears were jamming the VIX higher to stop the rally in its tracks but as soon as the VIX threatened to pop above the 15.12-15.20 bull-bear line in the sand, volatility was spanked lower again. Poor Uncle Vix. Each time he pokes his head up and out of the foxhole, and he is ready to jump up and leap higher, Chairman Powell is standing over him with a Louisville Slugger baseball bat whacking Uncle Vix in the head. Nonetheless, it is tough to keep that energetic Uncle Vix down; he will keep trying to pop himself up out of that foxhole.

The important 200-day MA is at 15.12 which is a key bull/bear market signal. Keybot the Quant remains long the market and is tracking VIX 15.20 as the key bull-bear line in the sand. Thus, VIX 15.12-15.20 is for all the marbles. You can watch this and ignore everything else.

Very simply, bulls win big if the VIX remains below 15.12. Bears win if the VIX climbs above 15.20. It's not rocket science. 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 1:14 PM EST: The SPX is up 19 points, +0.6%, to 3161. VIX is dropping to 14.39 so stocks should experience a bit more buoyancy. UTIL -0.4. Copper +0.3%. The trade deal is priced-in to copper. The red metal has rallied strongly over the last week and appears uninspired today despite the euphoric trade talk.

Note Added Friday Morning, 12/13/19, Friday the 13th, at 5:37 AM EST: Volatility tumbles lower pumping stocks higher. The VIX is trading at 12.64. S&P futures are up +16, at the overnight highs, on news of the US-China trade deal and happy UK election results.