Typically, a FGIC lunge from extreme fear readings is accompanied by a wave of Spike Bounce signals.
FGIC is touching its neutral zone
Typically, a FGIC lunge from extreme fear readings is accompanied by a wave of Spike Bounce signals.
2 Comments
Claudio D.
Hi Gianluca- this is my take on this unusual-looking chart. Corrections can be fast and furious taking the indicator quickly to the extreme fear zone. Or, long prolonged corrections measured in time. Price doesn’t go anywhere or moves very little, people get bored and give up. People, for the most part like action, movement, boring is a turn-off. As a trader and investor, I have learned to embrace boring.
Gianluca L.
Hi Claudio, the peculiarity here is that there were neither volatile corrections nor progressive descents – only small pullbacks. Nevertheless, the market sentiment was prepared for the worst… We have seen something very similar with the prolonged bearish divergences of the NH-NL, now resolved. The market was preparing for a correction that didn’t happen but the fact that the market’s innermost structures are being disrupted by the FOMC, Powell etc., is of great concern to me.