Despite two Spike Bounce (SB) signals in just a few days, FGIC remains in its negative zone, and declining.
The two latest SB signals are marked with dashed lines: S (strong) and W (weak). The rally attempt of FGIC after the strong SB signal was rejected by its neutral zone (red circle) – the area between -2 and +2 – which often works as a congestion zone. That area will likely be hard to break to the upside.
Of the 7 parameters that contribute to the CNN Fear&Greed Index, from which FGIC is derived, the only positive is junk bond demand, suggesting that investors are shifting risk from equities to low-grade, high-yield bonds.
I would like to thank everyone for your kind and constructive comments and wish a very Merry Christmas to you and your loved ones.