The bars on the chart are colored red when the Fear&Greed Composite Index (FGIC) is -8 or lower (Extreme Fear) and green when FGIC is +8 or higher (Extreme Greed).
FGIC has remained in the extreme greed zone for almost a month. It had first entered that zone four months ago, had a pullback, and is up there again. We see two similar occasions in the past (boxed in red). Such double tops always preceded pullbacks in the S&P – either minor or severe.
The current double top of FGIC appears to be quite old…
(This article has been posted on SpikeTrade. Follow FGIC updates on www.spiketrade.com)