Analisi di Mercato

FGIC still negative, with overhead resistance

December saw three Spike Bounce (SB) signals, two strong, one weak, while FGIC continued its decline, closing last week still in the negative zone (-6).

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. ]

The last three SB signals are marked by dashed lines S (strong) and W (weak).  We have seen several times that in order for a price rebound after a SB to be valid, FGIC has to follow to the upside: ideally, we want to see in the coming days FGIC to rise and test its neutral zone (between +2 and -2). 

That zone has supported most of the rise after the 2020 selloff and now looks like a pretty tough resistance.

Best wishes for this last trading week of the year and throughout 2022.