FGIC left its positive territory 88 days ago, entered negative territory 52 days ago and touched the extreme fear readings 25 days ago. As mentioned in a previous post, the average time FGIC spent in its extreme fear zone was 64 daily bars, so we are about 1/3 of the way there.

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. ]

We had three Spike Bounce signals in recent weeks: one weak, one medium, and one retriggered. Meanwhile, the market sentiment remained unchanged.  It is a unique situation of FGIC in its extreme fear zone while the market is at a historic high.

Have a safe trading week,

Gianluca L.