FGIC spent another week unchanged, at its –4 level.

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. ]

S&P continues to struggle below its important congestion zone, between 4550-4600.  It closed on Thursday and Friday above its EMA 21.  Ideally, for a bullish scenario, we’d like to see a pullback to the –1 ATR, with a V1 or V2 trigger, while FGIC maintains current levels.

Have a safe trading week,

Gianluca L.