Thursday’s weak Spike Bounce signal was triggered with FGIC in the positive zone (+4). Following the selloff on the last three days of the week, FGIC sank into neutral zone at +2.
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).
In previous weeks I have presented several charts analyzing the behavior of FGIC following a medium or strong Spike Bounce signal as well as the more powerful and rare Spike signals. In this week’s chart, weak signals which occurred during 2020 are also represented by W and dashed lines). Unlike higher-ranked signals, it is more difficult to find matches between weak signals and the FGIC. In 2020, four out of the 6 weak signals triggered while the FGIC was in positive to extreme greed readings. The remaining two signals (marked with a red and green arrowhead) occurred with FGIC in negative zone but their outcomes were mixed. The effects of a weak signal triggered while FGIC was in extreme fear readings haven’t been reliable.