December saw three Spike Bounce (SB) signals, two strong, one weak, while FGIC continued its decline, closing last week still in the negative zone (-6).
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 three SB signals are marked by dashed lines S (strong) and W (weak). We have seen several times that in order for a price rebound after a SB to be valid, FGIC has to follow to the upside: ideally, we want to see in the coming days FGIC to rise and test its neutral zone (between +2 and -2).
That zone has supported most of the rise after the 2020 selloff and now looks like a pretty tough resistance.
Best wishes for this last trading week of the year and throughout 2022.
