On Friday, the daily S&P500 closed just ticks below its +3 ATR and at the upper edge of former support zone between October 2021 and April 2022, that is now acting as a resistance area. A pullback to value would not be unexpected.

FGI, tracked by CNN, has left its extreme fear zones in all four timeframes.  The daily, weekly, and monthly are all within or very close to their neutral zones between 45 and 55.

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 approaching its neutral zone, a frequent congestion zone.

If a pullback occurs in the next few days, it will be important that the S&P500 does not sink below -1ATR and that FGIC does not return to extreme fear readings.

Have a safe trading week,

Gianluca L.