FGIC stands for Fear/Greed Index Composite, a derivative of the CNN Fear&Greed Index. Please follow these links: original and update explanations how FGIC works. (click to enlarge)
We saw last week that FGIC is useful for tracking divergences. They are best seen in four separate timeframes which make up the Composite index. Negative divergences are currently present in all timeframes.
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).
FGIC had reached its positive zone (above the zero line) in June and it has remained positive to neutral since then. In healthy markets FGIC tends to remain in its positive area, with short trespassing in greed readings. On this chart we can see a gradual weakening of enthusiasm since September..
(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)