Fear & Greed Index

Different levels :

0 - 49

Indicates a feeling of fear

50

Indicates a neutral feeling

51 - 100

Indicates a feeling of greed

The index is updated regularly

Summary

  • 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 ?

01/

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.

04/

Put and Call Options

The Chicago Board Options Exchange put/call ratio. A higher put/call ratio indicates fear and vice versa.

07/

Market Volatility

The Chicago Board Options Exchange (CBOE) Volatility Index (“VIX”). A higher VIX value indicates fear and vice versa.

02/

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.

05/

Safe Haven Demand

The performance of stocks relative to bonds. Greater relative performance indicates greed and vice versa.

03/

Market Momentum

The performance of the S&P 500 relative to its 125-day average. A greater relative performance indicates greed and vice versa.

06/

Junk Bond Demand

The yield spread between investment-grade bonds and junk bonds. A greater yield spread indicates lower junk bond demand (signals fear) and vice versa.
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