Analisi di Mercato

FGIC: Markets greedy again

The end of the latest correction confirmed our earlier data – that a Spike Bounce signal followed by a rise of FGIC out of its extreme fear zone is a powerful combination that marks the end of a correction and the beginning of a new bull market.

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.

This time FGIC spent 74 calendar days in its extreme fear zone – longer than its average of 52 days.

Now, FGIC climbed to the lower end of extreme greed readings (+8).  This does not mean that the next correction is imminent.  FGIC is less accurate in signaling market tops than bottoms and tends to stay in extreme greed readings longer (on average 78 calendar days for extreme greed vs 52 days for extreme fear).