{"id":28160,"date":"2026-07-31T07:30:00","date_gmt":"2026-07-31T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=28160"},"modified":"2026-07-30T15:10:59","modified_gmt":"2026-07-30T19:10:59","slug":"the-sixth-buy-signal-of-2026","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-sixth-buy-signal-of-2026\/","title":{"rendered":"The Sixth \u201cBuy Signal\u201d of 2026"},"content":{"rendered":"

While everyone is screaming “SELL,” the Volatility Index (VIX) suggests it is time to buy – at least for an oversold bounce.<\/p>\n

The stock market’s fear gauge is on the verge of generating its sixth buy signal of 2026.<\/p>\n

Take a look…<\/p>\n\n

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

VIX buy signals occur when the index closes above its upper Bollinger Band and then closes back inside the bands.<\/p>\n

Bollinger Bands indicate the most probable trading range for a stock or an index. Whenever a chart moves outside of its Bollinger Bands, it signals an “extreme” condition – which is vulnerable to a reversal in the other direction.<\/p>\n

In the case of the VIX, these extreme conditions trigger buy and sell signals for the broad stock market.<\/p>\n

On Wednesday, the VIX closed above its upper Bollinger Band. When it closes back inside the bands, the VIX will generate a broad stock market buy signal. That could happen as soon as today.<\/p>\n

We’ve seen five such buy signals – or buy signal clusters, when the VIX generated two or more buy signals within just a few days of each other – so far in 2026. Here’s how the S&P 500 behaved following each of those signals…<\/p>\n\n

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

The stock market rallied in the days immediately following four out of the five VIX buy signals.<\/p>\n

The S&P 500 rallied 150 to 200 points in a week following the signals in January and February. The buy signal in late March marked the start of an enormous, intermediate-term rally phase. And, the buy signal last month preceded a 250-point rally in the S&P in just two weeks.<\/p>\n

The one failed buy signal in early March preceded a 400-point drop in the S&P 500. That was painful. But, it led to an even more significant buy signal later in the month.<\/p>\n

With an 80% success rate so far this year, traders have done well to buy stocks when the VIX told them to do so.<\/p>\n

The VIX is now, once again, on the verge of telling us to buy.<\/p>\n

There are still plenty of reasons to be cautious on the stock market as we head through 2026 and beyond. But, for the next several days – and maybe even the next few weeks – a VIX buy signal, combined with the oversold conditions we looked at on Wednesday<\/a> could lead to one heck of a short-term bounce.<\/p>\n

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

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

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

While everyone is screaming \u201csell,\u201d the Volatility Index (VIX) suggests it is time to buy.<\/p>\n","protected":false},"author":2759,"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-28160","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_content_changed_at":"","ai_tts_content_changed_during_generation":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/28160","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\/2759"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=28160"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/28160\/revisions"}],"predecessor-version":[{"id":28166,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/28160\/revisions\/28166"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=28160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=28160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=28160"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=28160"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=28160"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=28160"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=28160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}