The S&P plummeted Thursday and Friday, aimed at retesting this year’s lows.
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The weekly S&P is retesting for the fourth time an important congestion area between 4300 – 4200. If this support gives way, it’ll be difficult to see another significant support before the 3800 level. The weekly component of the FGIC has entered the negative zone, marking the third consecutive lower high (see red numbers).
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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. ]
The typical reaction rally within a bear market had reached its peak in early April, and since then the S&P has lost almost 400 points. FGIC has failed in its attempt to break upward from its neutral zone. It now continues negative, between -4 and -6.
A prompt rebound from the current support levels would be necessary to avoid a new deepening to panic levels.
Have a safe trading week,
Gianluca L.
3 Comments
Robert F.
Something is fishy about the F&G Index. The new web page shows a different value F&G index value compared to the CNN Markets webpage. Those used to be synced up perfectly. And Friday the index held at 40 while the markets had a panic sell. The Markets page was under 25. So either they screwed up the new F&G web page view, or they are screwing around with the algorithm and messing up things for a comparative basis.
Gianluca L.
Robert, you’re right, thanks for noticing.
The CNN Market webpage always worked even when the main one was down, I’d tend to think it’s working regularly now too. Do you happen to have the values for the last few days of the Market page?
Robert F.
Sorry Gianluca, I don’t track the index on a daily basis. I only track it to let me know when fear or greed are at extremes so I can get ready for a short term mean reversion trade or exit my trend trades. What it does in between extreme values I pretty much ignore.