The recently ended correction was the sixth during the period for which we have FGIC historical data. It ended after a cluster of powerful bullish signals that we follow in SpikeTrade: a strong Spike Bounce signal followed by a 1-HL setup and a V1 trigger.
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 sank into its negative zone five months ago, touching the extreme fear levels twice between July and September. It has now confirmed SpikeTrade bullish signals by breaking out of the negative zone and closing in the upper range of the neutral zone.
Every time this happened in the previous corrections, it was the signal of a new multi-week, multi-month bull market.
(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)