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?

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).  Solid and dashed lines represent past Strong and Medium Spike Bounce signals, respectively.

 [ Please follow these links: original and update explanations how FGIC works. ]

I’ve written here repeatedly that the current period of fearlessness s the longest in the past 6 years for which I have data.  The second longest period had been interrupted by two single days of extreme fear readings (red arrows).  If we count those two out, the period of continuous uptrend would have been 445 days, or 63 weeks.  The current period – note the much steeper slope – is 326 days, or 46 weeks old.

Have a safe trading week.

Gianluca L.