{"id":19369,"date":"2022-01-31T07:30:26","date_gmt":"2022-01-31T12:30:26","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19369"},"modified":"2022-01-31T07:30:26","modified_gmt":"2022-01-31T12:30:26","slug":"this-signal-took-its-sweet-time-to-get-here","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-signal-took-its-sweet-time-to-get-here\/","title":{"rendered":"This Signal Took Its Sweet Time to Get Here"},"content":{"rendered":"

We finally got our first VIX buy signal of the year<\/a>.<\/p>\n

We knew it was coming… The Volatility Index (VIX)<\/a> closed above its upper Bollinger Band<\/a> almost two weeks ago. All it needed to do was close back inside the bands, and it would generate a broad stock market buy signal.<\/p>\n

It sure took its sweet time getting here…<\/p>\n

But we got the buy signal after the stock market closed last Thursday – just in time for Friday’s bounce. And it looks like this buy signal has a lot farther to run.<\/p>\n

Let’s take a look at the updated VIX chart, along with its Bollinger Bands…<\/p>\n

\"Chart\"<\/div>\n

Not only did the VIX hit its highest level in a year during the recent market decline, but the Bollinger Bands are the widest they’ve been in a year.<\/p>\n

So, we’re due for some sort of action that causes the bands to narrow. That action is usually in the form of a falling VIX – which typically goes along with a rising stock market.<\/p>\n

We had a similar setup in early December (left blue arrows). Back then, the S&P gained about 300 points over the next month.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

But most technical indicators are more oversold today than they were in early December<\/a>. So, there’s a lot more energy to fuel an even stronger move.<\/p>\n

It looks like we’re set up well for a sustainable rally that lasts for a few weeks.<\/p>\n

I argued last Monday<\/a> – as we entered the week with the S&P 500 trading near 4,400 – that traders should buy into any weakness. There were plenty of opportunities to do that as the index dipped as low as 4,222 before rebounding.<\/p>\n

But now with a new buy signal in place, we may not get a chance to buy into weakness. Stocks could simply trend higher from here.<\/p>\n

Nonetheless, buying stocks today is still a lot cheaper than buying stocks one month ago. The S&P 500 is trading today at its lowest level since last October.<\/p>\n

We probably won’t be able to say that one month from now.<\/p>\n

Best regards and good trading,<\/p>\n

\"signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

Did you buy into the recent market weakness? If so, will you be buying in more before the market heads higher?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It seems like signal has a lot further to run…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-19369","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19369"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19369\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19369"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19369"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19369"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19369"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}