How long can FGIC stay at an extreme greed level

The bars on the chart are colored red when FGIC is -8 or lower (Extreme Fear) and green when the Composite Fear & Greed Index is +8 or higher (Extreme Greed).

Composite Fear & Greed Index

As the S&P500 hit new all-time highs again this week, FGIC returned to its extreme greed zone on Thursday.  This bullish period would seem to be very long, but not unusual.  You can see in the inset (dates in the European format) that the average time from the first day at extreme greed levels (+8 or higher) to the first day at extreme fear levels (– 8 or lower) has been 144 days. The longest period on record was 260 days.

As of today, 159 calendar days have passed since the first rise to the extreme greed levels on August 4th.

(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)

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