After the latest weak Spike Bounce signal on Tuesday, FGIC remained flat for two days and gained 1 tick on Friday, closing the week at -9, still in extreme fear zone.
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. ]
In the past, a rising FGIC after a Spike Bounce signal has often been a bullish signal, but there are at least two considerations to keep in mind: 1) the signal was weak and 2) both the weekly and the daily S&P are at +2 ATR, while the new lows are back above 500.
Have a safe trading week,
Gianluca L.
1 Comment
Robert F.
If you drill down into the seven greed and fear indicators, the market momentum is in the greed category, and the stock price strength and stock price breadth are both in the extreme fear category. That is a big time divergence! Market sentiment is confirming the NH-NL divergence. This is a scary market to be fully invested in right now.
https://money.cnn.com/data/fear-and-greed/