|S&P has accelerated downward in this last abbreviated trading week, but market sentiment deteriorated to a lesser degree.|
While the S&P declined from its all-time high of January 4, FGIC went countertrend until the middle of last week. It reached the top on Wednesday, then sank into its neutral zone in the last two days of the week.
The inset on the left shows that the daily values of the CNN Fear&Greed Index only went mildly negative on Friday. It is quite remarkable that the S&P has lost almost 9% from its high and the Nasdaq is in the correction zone having lost 14%, without significantly affecting market sentiment.
The S&P is currently oversold and the FGIC resting on its neutral zone support. It is another sign of the possible upcoming reaction rally.