… the longest in six years for which I’ve been collecting my data (since historical data cannot be purchased). FGIC remains at +6, the lower boundary of extreme greed zone.

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. ]

As Alex wrote, greed is a prolonged and pleasant feeling:  traders are profiting and want to keep making money and for this reason market tops are rounded and prolonged.   At the opposite end, bear markets generate fear, an unpleasant feeling that traders want to end as soon as possible, which accounts for the "V" shaped bounces of the last three large corrections since 2018.

This is why, when FGIC is at extreme greed readings it does not mean that a correction is imminent.  We are in the longest period of the past 6 years without ever touching extreme fear readings.  Of course, it will all end with a powerful correction, the descent of FGIC to extreme fear zone, followed by one or more Spike Bounce signals as a market reaction:  the best FGIC signals come from divergences between FGIC and price, especially after a Spike Bounce signal.

In the meanwhile, have a safe trading week.

Gianluca L.