Yet another Spike Bounce signal and FGCI at the lower levels of extreme greed readings. Last week I had highlighted as a possible correction would have been anomalous given that most frequently a correction takes its cue with high levels of euphoria on the markets.
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 time FGCI left its extreme greed readings was at the end of December (red arrow); since then there have been two short pullbacks interrupted by a cluster of 5 weak Spike Bounce signals (vertical dashed lines). If during this week FGIC will get to overcome the current level (+8) to officially enter in extreme greed readings, it will add another element that makes a correction more and more likely.
(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)