As often happens during the deepest corrections, we had a series of Spike Bounce signals: three strong ones in 15 trading days.
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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. ]
After the first two SBs, FGIC continued to decline down to -11, a panic level reached in the last two years only at the end of the pandemic selloff. But after the last SB on Wednesday, FGIC made a tick to the upside: a confirmation signal.
If FGIC's rise continues this week, it will signal if not the end of this correction, at least a prolonged, multiweek rally.
Have a safe trading week,
Gianluca L.
7 Comments
Gregory K.
Gianluca, Is there a way I can follow or get updates of this signal during the week?
Lee M.
Thanks Gianluca. Would you mind to notify us when this signal continues to rise this week please.
Gianluca L.
Gregory, Lee, thank you for your interest. I will post here if there are any significant changes, just be sure to be notified of new comments.
Gianluca L.
FGIC closed on Monday at -9. It’s the second increase since Thursday’s SB signal
Gianluca L.
FGI’s main page on CNN is down today. It happens sometimes, but this alternate link has always worked, scroll down the page a bit and you’ll find the updated value on the right.
https://money.cnn.com/data/markets/
On Wednesday FGIC closed at -9 again, up from -11 last week.
Gianluca L.
FGIC closed on Thursday at -7, leaving the extreme fear readings.
Michael H.
Excellent tool. Thanks.