Fear & Greed Index
Different levels :
0 - 49
Indicates a feeling of fear
Indicates a neutral feeling
51 - 100
Indicates a feeling of greed
The index is updated regularly
The Fear and Greed Index is a tool used to gauge investor sentiment on the stock market.
The index is based on seven different factors - each factor is gauged from 0 to 100 and equally weighted to generate the index value.
It is seen as less of an investment research tool and more of a market-timing tool.
How is the Fear & Greed index calculated ?
Stock Price Strength
The number of stocks on the New York Stock Exchange (NYSE) hitting 52-week highs relative to those hitting 52-week lows. A greater number of stocks hitting 52-week highs versus 52-weeks lows indicates greed and vice versa.
Put and Call Options
The Chicago Board Options Exchange put/call ratio. A higher put/call ratio indicates fear and vice versa.
Stock Price Breadth
The trading volumes of rising stocks relative to declining stocks on the NYSE. Greater trading volumes in rising stocks versus declining stocks indicate greed and vice versa.
Safe Haven Demand
The performance of stocks relative to bonds. Greater relative performance indicates greed and vice versa.