VIX Volatility Daily Chart

The bulls are running on Wall Street. Sleepy Joe Biden may take the presidency; he needs Arizona and Nevada and he is ahead in both. There are various pathways the election can take based on the final results from the key states of Arizona, Nevada, Georgia and Pennsylvania. Vote count data will continue to trickle in today.

Wall Street is okay with a Biden presidency since it removes uncertainty; investors would likely feel the same way if it was Trump. Also, the 'blue wave' (where the democrats take control of the senate) did not occur so Wall Street likes that the Biden agenda will not get too out of hand. If the upside continues for stocks, and the futures are up big again this Thursday morning, the post-election rally will easily set records.

The Keystone Speculator's VIX 200-Day MA Bull-Bear Indicator is very useful for short-term trading. Stocks move higher when the VIX is below the 200 (green circles) and equities sell off if the VIX moves above the 200 (red circles). The 200-day moving average is at 31.65 and yesterday's candlestick stabs down through this bull-bear line in the sand creating the massive move higher in stocks.

The thick green bar at 27 (green neon dot) is the bull-bear line in the sand currently being tracked by the Keybot the Quant algorithm which remains long. Three hours ago, the VIX fell below the key 27 and is currently printing at 26.47 sending the US futures ever higher. S&P +66.

If the VIX remains below 27.00, it is par-tay time for the bulls. They will be singin' songs and carryin' on having a good ole time into the weekend. If the VIX moves above 27.00, the upside rally in stocks will stall and stagnate and become shaky. Equities will roll over lower if the VIX moves higher from 27 up towards 31. The selling will accelerate as the VIX moves higher. If/when the VIX pops above the 200-day MA at 31.65, the wheels fall off the stock market and carnage on Wall Street begins. Thus, choose your poison. 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 8:04 AM EST: VIX flash crashes to 26 then pops back to 26.34; happy bullish. The bulls ae flexing their muscles and puffing-out their chests fully willing to carry the frail Sleepy Joey around the floor of the stock exchange in celebration.

Note Added Friday Morning, 11/6/20, at 2:53 AM EST: The VIX spends the Thursday session above the 26.89 bull-bear line in the sand currently called out by Keybot the Quant. The VIX ends Thursday at 27.58. That is why stocks stalled during the day and could not make further headway higher. S&P futures are down -17 overnight, becoming very soggy after President Trump spoke refusing to accept the election results that Joe Biden may become president. The VIX begins trading in a few minutes. Watch the VIX 26.89 line in the sand. Bulls rock and roll below 26.89 but equities will be sold off more and more the higher the VIX runs above 26.89.

Note Added Sunday, 11/8/20: The SPX ends the week at 3509 at a triple-top on the daily chart. The VIX collapses to 24.86 pumping stocks higher. Keybot the Quant identifies VIX 26.84 as the key bull-bear line in the sand so the bulls are partying all weekend long without a care in the world. Biden wins the electoral college vote above 270 and becomes president-elect but the president is barricaded in the Lincoln Bedroom and refuses to come out or concede.