FGCI is back, once again, in greed readings. We are 268 days away from the extreme fear readings in May 2020. Reviewing the five years of data I collected, the longest period of fearlessness was in 2016-2017 when FGIC spent 290 days above fear readings. Comparing the two periods we see that in 2017 the price was steadily rising with high directionality and low volatility. In the past year, to the contrary, prices have been rising with much higher volatility. In both periods, the pullbacks of FGIC indicated the resilience of the market.
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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. ]
Have a safe trading week
Gianluca L.
1 Comment
Claudio D.
Gianluca- great picture, worth more than a thousand words. Thank you for sharing this. I am wondering if this increased volatility could be a representation of the old expression: “the market is climbing the wall of worry”.