Many traders, myself included, have been long waiting for a correction: a clear washout of the lows followed by a convincing bull market recovery as a signal it is time to take aggressive position in the markets again. This market, however, has taken every small price drop as yet another buying opportunity.
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. ]
FGIC has spent last week declining to its neutral zone (between +2 and -2) – a frequent support level. The daily timeframe fell into the negative zone on Wednesday and Thursday, rising again on Friday, where a new Spike Bounce signal triggered.
In the past, when FGIC ticked up together or immediately after a Spike Bounce signal, it confirmed that signal.
Have a safe trading week
Gianluca L.
4 Comments
Michael H.
The chart does not show.
Armands L.
Gianluca, thanks for your posts. They are a nice addition to regular Spiketrade posts.
p.s. chart above isn’t showing.
Regards
Alexander E.
Thank you Mike and Armands – fixed!
Michael H.
Very helpful. Thanks.