VIX Volatility Daily Chart; Battle at 200-Day MA

The VIX is currently trading at the 15.51 palindrome with S&P futures up +26 about four hours before the opening bell for the Wednesday, 2/5/20, session. The stock market is in a near-term bear market (red circle) above the 200-day MA at 15.09 and a bull market below the 200 (green circle).

Most importantly, Keybot the Quant algorithm is tracking VIX 13.90 as the key bull-bear line in the sand. Thus, the stage is set. The stock market bears rule the markets as long as the VIX remains above 15.09. The ongoing rally is meaningless unless the bulls can push the VIX below 15.09. Between 13.90 and 15.09, the stock market will chop sideways with a slight downward bias. Below 13.90 and it is off to the races for the stock market bulls. Equities will catapult higher. 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 6:07 AM EST: VIX 15.52. S&P +26.

Note Added 7:04 AM EST: VIX 15.80. S&P +22.

Note Added 8:17 AM EST: VIX 15.666. S&P +27. Rumors fly that a scientist has found a cure for the coronavirus which creates the joy in the futures.

Note Added 9:56 AM EST: The SPX is up 27 points, +0.8%, at 3324. HOD 3330.53. The all-time record high for the S&P 500 is 3337.77 from 1/22/20. Price was only 7 points away from a new record high. The Nazzy indexes, COMPQ and NDX, both print new record highs yesterday and today. VIX 15.58. VIX LOD 15.31. The bulls are not yet able to push the VIX below 15.09 so all the stock market joy may be fantasyland.

Note Added Thursday Morning, 2/6/20, at 5:34 AM EST: The VIX is currrently trading at 15.34. During the hump day trade, the VIX came down to test the 200-day MA at 15.09 with a LOD at 15.02. Of course it did. Volatility bounced so the bulls failed to push the VIX down through the 200 on the first try. After the VIX started trading today at 3 AM EST, it teased the 200-day MA support again and floats higher again. The stock market rally will fade and the bears will gain strength if the bulls are unable to push the VIX below the 200-day MA at that 15.09-15.11 level. It is bounce or die time and the direction the VIX chooses will dictate stock market direction (inversely).