As the S&P reached new all-time highs at the end of the week, FGIC finally shook off its extreme fear readings.

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. ]

Left-side chart: In my post of August 16, 2021 I pointed out how quick V-shaped rebounds from below the –25 level of weekly FGI predicted a bull market recovery after a slight pullback (green vertical arrows).  If indeed this is a continuation of the uptrend, it would be the first time that it originates from a pullback of the S&P that ended above the value zone (+1 ATR).

Right-side chart: The medium Spike Bounce signal triggered on Monday (vertical line marked M) lifted FGIC from extreme fear to simply negative (-6) after 47 calendar days spent in extreme fear zone.

Have a safe trading week,

Gianluca L.