{"id":23429,"date":"2025-03-07T07:30:00","date_gmt":"2025-03-07T12:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23429"},"modified":"2025-08-22T07:33:28","modified_gmt":"2025-08-22T11:33:28","slug":"rare-triple-buy-signal-means-a-v-shaped-rally-is-ahead","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/rare-triple-buy-signal-means-a-v-shaped-rally-is-ahead\/","title":{"rendered":"Rare Triple Buy Signal Means a \u201cV\u201d Shaped Rally Is Ahead"},"content":{"rendered":"

The Volatility Index (VIX) just generated its third broad stock market \u201cbuy signal\u201d of 2025. All three occurred within the last 10 days.<\/p>\n

The first two signals reversed immediately. So, bullish traders are hoping this third time will be the charm.<\/p>\n

You may recall from my recent essay<\/a> that VIX buy signals occur when the index closes above its upper Bollinger Band, and then closes back inside the bands.<\/p>\n

We\u2019ve noted these signals many times over the years\u2026 and the track record is outstanding.<\/p>\n

Everyone once in a while, though, the signal misfires. Rather than rallying right away, the stock market falls \u2013 sending the VIX higher and above its upper Bollinger Band again. This action negates the buy signal.<\/p>\n

But, with the VIX above its upper Bollinger Band once again, the action sets the stage for a rare \u201cdouble\u201d VIX buy signal when the index closes back inside the bands.<\/p>\n

It is rarer still to get two failed VIX buy signals back-to-back \u2013 thereby setting the stage for a \u201ctriple\u201d VIX buy signal. That is, however, what the market is set up for right now.<\/p>\n

Take a look at this chart of the VIX\u2026<\/p>\n\n\n

<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n

You can see the three VIX buy signals that have happened over the past two weeks.<\/p>\n

We don\u2019t often see clusters of VIX buy signals. But, when it happens, it leads to \u201cV\u201d shaped rallies.<\/p>\n

For example, last July\/August we got a cluster of three VIX buy signals in about a two-week period.<\/p>\n

The first two signals failed.<\/p>\n

Following the third signal, though, the S&P 500 rallied 400 points (8%) in about 10 days.<\/p>\n

A similar move this time around would have the S&P 500 challenging the top of its recent trading range \u2013 near 6100 \u2013 by St. Patrick\u2019s Day.<\/p>\n

I don\u2019t recall ever seeing three failed VIX buy signals in a row.<\/p>\n

So, given the outstanding track record of this indicator, and given the large move that occurs following a cluster of buy signals, traders should take advantage of any weakness to add long exposure to the stock market.<\/p>\n

We\u2019re due for at least a short-term rally.<\/p>\n

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

\"Signature\"<\/p>\n

Jeff Clark
Editor, Market Minute<\/em><\/p>\n

\n

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

Have you checked out Jeff\u2019s 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<\/div>","protected":false},"excerpt":{"rendered":"

Traders should take advantage of any weakness to add long exposure to the stock market.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","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-23429","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\/23429","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\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23429"}],"version-history":[{"count":3,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23429\/revisions"}],"predecessor-version":[{"id":24956,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23429\/revisions\/24956"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23429"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23429"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23429"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23429"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}