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Fear and Greed Index

On this page, you will find our latest updates on the CNN Fear and Greed Index.

The CNN Fear and Greed Index in its purest form answers the question, “What is the predominant emotion of the stock market right now?”

It’s a sentiment indicator that tells if equities are undervalued or overvalued. The logic behind it is that too much greed can push stock prices beyond their fair price, while too much fear can cause stocks to slip well below their intrinsic price, as traders don’t act rationally in the short-term.

The Fear and Greed index uses seven indicators to conclude the extent of the market’s fear and greed and measures the market’s sentiment based on these two emotions on a daily, weekly, monthly, and annual basis. The following metrics compose the index and aim to provide a holistic view of the market’s emotions:

  1. Put and Call Options: How much have put options lagged behind call options?
  2. Market Momentum: Where is the S&P 500 relative to its 125-day average?
  3. Stock Price Strength: It counts the number of stocks that have touched 52-week highs vs. 52-week lows on the New York Stock Exchange (NYSE).
  4. Stock Price Breadth: The McClellan Volume Summation Index compares the volumes on rising stocks versus declining ones.
  5. Safe Haven Demand: How well are stocks performing compared to safe-haven assets like US Treasury bonds?
  6. Market Volatility: It uses the Chicago Board Options Exchange Volatility Index (VIX) relative to its 50-moving average.
  7. Junk Bond Demand: What is the spread between junk bonds and safer, investment-grade corporate bonds?

How to use the Fear and Greed Index?

The seven metrics are individually-measured on a scale of 0-100 with lower numbers indicating fear while higher figures pointing to greed. They are then weighted equally to calculate the Fear and Greed Index.

The index is a great tool to help investors and traders get an idea of when it is time to enter the markets. When the Fear and Greed index is trading near its recent extreme lows it hints that a significant bottom in the market is pending. The index should be interpreted with the help of technical analysis to improve entry signals. It is also possible to use the index to figure out when the market is overbought, but at least historically, the indicator is less useful to predict significant highs.

Latest Updates

Indices
·Jul 06, 2022, 14:22 BST

Fear and Greed Index: Markets in Extreme Fear As Recession Looms

The CNN Money Fear and Greed index shows that the US stock markets are in a state of extreme fear....
Read More
Indices
·Jun 29, 2022, 06:30 BST

Russell 2000 Forecast as the Fear and Greed Index Pulls Back

The fear and greed index is nearing its extreme fear zone as America’s consumer confidence data dives. It is trading...
Read More
Indices
·Jun 27, 2022, 07:37 BST

VIX Index Prediction as the Fear Gauge Forms Double-Top Pattern

The VIX index has come under intense pressure as the fear and greed index moves from the extreme fear zone...
Read More
Indices
·Jun 22, 2022, 07:07 BST

VIX Index Forecast as S&P 500 and Dow Jones Recoil

The VIX index is crawling back as American stock futures pull back. The index is trading at $30.20, which is...
Read More
Indices
·Jun 21, 2022, 09:48 BST

Here’s Why the Fear and Greed Index is Crashing

The fear and greed index is in the extreme fear zone as investors continue worrying about the hawkish Federal Reserve....
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Indices
·Apr 11, 2022, 08:16 BST

Dow Jones Index Forecast: Fear and Greed at 48 Ahead of Earnings Season

The Dow Jones Industrial Average has been in a tight range in the past few weeks as investors worry about...
Read More
Fear and Greed Index
Indices
·Mar 04, 2022, 17:59 GMT

Fear and Greed Index Showing Extremely Fearful Investors

The psychology of investors plays a key role when trading, regardless of the class asset they are investing in. This...
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s&p 500 Today
Indices
·Mar 04, 2022, 11:59 GMT

VOO Stock Price Forecast as the Fear and Greed Index Retreats

The VOO stock price has been wavering in the past few days as investors reflect on multiple factors. The Vanguard...
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Market Brief
·Feb 25, 2022, 14:28 GMT

Fear & Greed Index Exudes Extreme Fear Amid the Ongoing Russian Attack

Amid the ongoing Russia-Ukraine crisis, the fear & greed index gives an outlook of price movements among various financial assets.
Read More
Indices
·Nov 22, 2021, 13:48 GMT

Dow Jones in a Thanksgiving Rally as Fear and Greed Retreats

The Dow Jones index futures have risen by more than 100 points on Monday. This jump has helped to offset...
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