S&P has been climbing since the beginning of May, interrupted only by a few quick pullbacks. While financial markets have become largely unrelated to the real economy in recent times, they are now also independent of market sentiment.

The bars on the chart are colored red when FGIC is -8 or lower (Extreme Fear) and green when FGIC is +8 or higher (Extreme Greed).   [ Please follow these links: original and update explanations how FGIC works. ]

Last week was bullish, bringing the S&P from an oversold level (-3 ATR on the daily) to the first resistance in the Value Zone (the EMA line).  In between, there were two weak Spike Bounce signals (vertical lines marked with W) which overshot their target but FGIC sank on Monday to its extreme fear readings where it remained all week. 

Have a safe trading week,

Gianluca L.