The holiday-shortened week began with two bullish signals, a V1 trigger and a weak Spike Bounce. For the last two days the S&P closed above the value zone, the new lows finally fell below 500 on both days.

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. ]

By now FGIC has spent 76 days in its extreme fear zone (an average stay is 56 days).  This is the second longest stay after 95 days of the late 2018 correction, which was also the first correction in years.  After all the bullish signals of recent weeks, a breakout of FGIC above – 8, out of its extreme fear zone, is still missing.

Have a safe trading week,

Gianluca L.