FGIC spent the first four months of 2021 bouncing between its neutral zone and the lower edge of the extreme greed readings, without euphoric excesses and never falling into negative territory.

Yet another Spike Bounce signal and FGCI at the lower levels of extreme greed readings. Last week I highlighted that a possible correction would have been anomalous given that most frequently a correction takes its cue with high levels of euphoria in the markets.

All four timeframes of FGIC show major bearish divergences from the S&P. FGIC does not signal any excess euphoria in the markets but continues to quietly linger in its positive zone. If a correction were to trigger in this situation, it would be one of the rare times that it happens without any previous or current signs of greed.

Last week began with a gap up on Monday, spent two days consolidating, but closed on Friday at a new all-time high and only one point below the high of the day. FGIC is following this powerful bull market without excesses: it refuses to go down to negative values, but also keeps away from euphoric excesses. How long can it last?

FGIC left the extreme fear readings almost 11 months ago, it has never turned back and spent so far the longest fearlessness period in the last 6 years. All pullbacks in the last 11 months have been interrupted by medium or weak Spike Bounce signals.