The weekly S&P500 closed well above –1 ATR, while the daily reached +2ATR and fell but held above its value zone. We had numerous bullish SpikeTrade signals in recent weeks and price is responding to them.

The weekly, monthly, and daily components of the FGIC left their extreme fear zones.  The slower quarterly component is still in that zone but has turned up.  Market sentiment is showing definite signs of improvement.

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. ]

FGIC is still in its extreme fear zone into which it sank 90 days ago but has gained 2 points, closing for the week at -9.  In the six-year history of our data, the longest period in extreme fear zone was 95 days in 2016.

The uptrend may pause this week, but we want to see the weekly S&P500 stay above –1 ATR and FGIC break our above –8.

Have a safe trading week,

Gianluca L.