A cluster of powerful bullish signals triggered last week’s uptrend.

The Spike signal (vertical green line) and two strong Spike Bounce signals (dashed lines marked S) occurred within a few days, but FGIC spent eight consecutive days at the –11 level.

The target for the S&P is around the weekly EMA 21, currently at 4300.  It closed Friday just below +1 ATR, and a small retracement or slowdown in the price run is possible.  For bullish momentum to continue, we need to see FGIC to rise and abandon its extreme fear readings in the coming days.

Have a safe trading week,

Gianluca L.