After the bull run in October the markets are taking a break. FGIC, which accompanied that rise, remained at the lower level of extreme greed readings (+8) throughout last week. 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. ] When FGIC is in the extreme fear readings, the markets are in pain – a pain that can last for months, but often ends with a violent upmove.  In healthy bull markets, FGIC tends to stay in its positive zone.  Its overruns into the extreme…

The end of the latest correction confirmed our earlier data – that a Spike Bounce signal followed by a rise of FGIC out of its extreme fear zone is a powerful combination that marks the end of a correction and the beginning of a new bull market. 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. This time FGIC spent 74 calendar days in its extreme fear zone – longer than its average of 52 days. Now, FGIC climbed to the lower end of extreme…

The recently ended correction was the sixth during the period for which we have FGIC historical data. It ended after a cluster of powerful bullish signals that we follow in SpikeTrade: a strong Spike Bounce signal followed by a 1-HL setup and a V1 trigger. 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. ]  FGIC sank into its negative zone five months ago, touching the extreme fear levels twice between July and September.  It has now confirmed SpikeTrade bullish signals by breaking out of…

A Spike Bounce signal warns traders that a rally is imminent – but not necessarily that the market correction is over. 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. ] From the market top in early September (where FGIC found resistance in its neutral zone between -2/+2) the price decline triggered three weak Spike Bounce signals (marked by vertical dashed lines).  FGIC continued sideways, signaling that market sentiment was not in good shape and the bottom had yet to be found.  The final strong…

FGIC began to decline in May, building a massive divergence from S&P. It sank to extreme fear readings in mid-July and, with the exception of one week, has remained there. 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 strong SB signal (marked by the vertical line S) which signaled a rally was confirmed on Friday by the FGIC exiting its extreme fear zone.  In order for the current uptrend to continue, it is necessary for FGIC to rise from its neutral zone…

All market corrections sooner or later start triggering one or more Spike Bounce signals, until the last one in the series augurs in the new bull market. FGIC has a close relationship with Strong and Medium Spike Bounce signals. 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. ] Solid vertical lines mark the strong SB and the dashed lines medium SB signals during previous corrections. Sometimes a single signal was enough to interrupt the decline (June ’19, March ’20) more often multiple signals intervened, but…