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 for the original and update explanations of how FGIC works. ]
As the S&P500 hit new all-time highs again this week, FGIC returned to its extreme greed zone on Thursday. This bullish period would seem to be very long, but not unusual. You can see in the inset (dates in the European format) that the average time from the first day at extreme greed levels (+8 or higher) to the first day at extreme fear levels (– 8 or lower) has been 144 days. The longest period on record was 260 days.
As of today, 159 calendar days have passed since the first rise to the extreme greed levels on August 4th.
I’m confused why you changed the original boundaries of the FGI. which were 0 to 100, to -12 to +12. The CNN Money FGI closed at 71 yesterday, which was the close of last week, which is not in the extreme greed zone. I’d appreciate if you please fill me in on what I’m missing if you have a spare second. Thanks for going to all the trouble you do to share your findings!
Robert, what you are referring to is the CNN Fear & Greed index. As described in the two links above, I calculated the CNN FGI in four timeframes – daily, weekly, monthly, and quarterly.
The Composite Fear&Greed Index (FGIC) is obtained by assembling the four timeframes into a single indicator.
Please see https://www.spiketrade.com/members/blog/?id=1081 https://www.spiketrade.com/members/blog/?id=1110
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4 Comments
Darren K.
Thank you Gianluca. I always appreciate your updates.
Igor D.
I second Darren. FGIC data is becoming very interesting!
Robert F.
Gianluca,
I’m confused why you changed the original boundaries of the FGI. which were 0 to 100, to -12 to +12. The CNN Money FGI closed at 71 yesterday, which was the close of last week, which is not in the extreme greed zone. I’d appreciate if you please fill me in on what I’m missing if you have a spare second. Thanks for going to all the trouble you do to share your findings!
Gianluca L.
Robert, what you are referring to is the CNN Fear & Greed index. As described in the two links above, I calculated the CNN FGI in four timeframes – daily, weekly, monthly, and quarterly.
The Composite Fear&Greed Index (FGIC) is obtained by assembling the four timeframes into a single indicator.
Please see
https://www.spiketrade.com/members/blog/?id=1081
https://www.spiketrade.com/members/blog/?id=1110