Last week FGIC left the neutral zone and entered the fear zone for the first time in almost a year. It is still above its extreme fear readings, closing the week where it started (-4).
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. ]
S&P500 latest attempt to rebound didn’t increase the enthusiasm of the market crowd. FGIC went sideways, suggesting that the bulls’ attempts to lead were not supported by a change in sentiment.
We need to see a rise in FGIC if the rally is to succeed: a party where no one is smiling and having fun is bound to end.
(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)