VIX Volatility Daily Chart

The bears push stocks lower with the VIX above the key 25.35 bull/bear line in the sand called out by the Keybot the Quant algorithm (red bar). The VIX 200-day MA at 29.71 is where the wheels fall off the stock market.

If the VIX drops below 25.35, the bulls are back in business and stocks will rally. If stocks rally, like this morning, but the VIX does not drop below 25.35, like now, stocks will likely reverse and selloff again. Stocks should remain weak between 25.35 and 29.71 and the selling will increase dramatically if price moves above 28 and 29. If the VIX moves above 29.71, the fun begins. People will begin panicking and start to run for their lives and the rout will be on; stocks will be dropping like rocks.

VIX is at 27.11. Let the game begin. 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 Wednesday Morning, 1/6/21, at 5:42 AM EST: The bears hung in there for a while yesterday but the bulls forced the VIX lower below 25.35 in the afternoon creating market lift. However, the VIX jumped back into the bear camp at the closing bell at 25.34 (the bull/bear line in the sand moves slightly lower to 25.30). As of right now, the Keybot the Quant algorithm is tracking VIX 25.30 as the key line in the sand. VIX is trading and fell below 25.30 creating lift in the futures off the lows about 90 minutes ago. Futures are mixed. VIX 25.00. S&P -9. The Fed has its jackboots on the throat of volatility this morning to try and keep stocks elevated to protect the wealthy class. Watch VIX 25.30 on this hump day, it is for all the marbles. Bears win above. Bulls win below. VIX is at 24.87 right now so the bulls are cheering and walking around with their chests puffed-out.