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FEAR & GREED INDEX

What emotion is driving the market now?
Learn more about the index


Overview
Timeline
Fear & Greed Index - Investor Sentiment CNN’s Fear & Greed Index is a way to
gauge stock market movements and whether stocks are fairly priced. The index
uses seven market indicators to help answer the question: What emotion is
driving the market now?


13
Previous close
13
1 week ago
15
1 month ago
32
1 year ago
29
Last updated May 25 at 10:47 AM EDT
Fear & Greed Index - Investor Sentiment - Timeline CNN’s Fear & Greed Index is a
way to gauge stock market movements and whether stocks are fairly priced. The
index uses seven market indicators to help answer the question: What emotion is
driving the market now?                  
Extreme Greed
Extreme Fear


0

25

50

75

100



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
27
fear


Last updated May 25 at 10:47 AM EDT


7 FEAR & GREED INDICATORS

market momentum
extreme fear


S&P 500 AND ITS 125-DAY MOVING AVERAGE

S&P 500

125-day moving average


S&P 500 and its 125-day moving average It’s useful to look at stock market
levels compared to where they’ve been over the past few months. When the S&P 500
is above its moving or rolling average of the prior 125 trading days, that’s a
sign of positive momentum. But if the index is below this average, it shows
investors are getting skittish. The Fear & Greed Index uses slowing momentum as
a signal for Fear and a growing momentum for Greed.                  



4,800.00

4,600.00

4,400.00

4,200.00

4,000.00



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
S&P 500
4,188.13
125-day MA
3,914.81


Last updated May 25 at 10:47 AM EDT

It’s useful to look at stock market levels compared to where they’ve been over
the past few months. When the S&P 500 is above its moving or rolling average of
the prior 125 trading days, that’s a sign of positive momentum. But if the index
is below this average, it shows investors are getting skittish. The Fear & Greed
Index uses slowing momentum as a signal for Fear and a growing momentum for
Greed.


stock price strength
extreme fear


NET NEW 52-WEEK HIGHS AND LOWS ON THE NYSE


Net new 52-week highs and lows on the NYSE A few big stocks can skew returns for
the market. It’s important to also know how many stocks are doing well versus
those that are struggling. This shows the number of stocks on the NYSE at
52-week highs compared to those at 52-week lows. When there are many more highs
than lows, that’s a bullish sign and signals Greed.              


10.00%

0.00%

-10.00%



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
7.50%


Last updated May 25 at 10:47 AM EDT

A few big stocks can skew returns for the market. It’s important to also know
how many stocks are doing well versus those that are struggling. This shows the
number of stocks on the NYSE at 52-week highs compared to those at 52-week lows.
When there are many more highs than lows, that’s a bullish sign and signals
Greed.


stock price breadth
extreme fear


MCCLELLAN VOLUME SUMMATION INDEX


McClellan Volume Summation Index The market is made up of thousands of stocks.
And on any given day, investors are actively buying and selling them. This
measure looks at the amount, or volume, of shares on the NYSE that are rising
compared to the number of shares that are falling. A low (or even negative)
number is a bearish sign. The Fear & Greed Index uses decreasing trading volume
as a signal for Fear.                  
Market breadth strong
Market breadth weak


1,000.00

500.00

0.00

-500.00

-1,000.00



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
635.26


Last updated May 25 at 10:47 AM EDT

The market is made up of thousands of stocks. And on any given day, investors
are actively buying and selling them. This measure looks at the amount, or
volume, of shares on the NYSE that are rising compared to the number of shares
that are falling. A low (or even negative) number is a bearish sign. The Fear &
Greed Index uses decreasing trading volume as a signal for Fear.


put and call options
extreme fear


5-DAY AVERAGE PUT/CALL RATIO


5-day average put/call ratio Options are contracts that give investors the right
to buy or sell stocks, indexes or other financial securities at an agreed upon
price and date. Puts are the option to sell while calls are the option to buy.
When the ratio of puts to calls is rising, it is usually a sign investors are
growing more nervous. A ratio above 1 is considered bearish. The Fear & Greed
Index uses a bearish options ratio as a signal for Fear.                    


1.00

0.90

0.80

0.70

0.60

0.50



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
0.63


Last updated May 25 at 10:47 AM EDT

Options are contracts that give investors the right to buy or sell stocks,
indexes or other financial securities at an agreed upon price and date. Puts are
the option to sell while calls are the option to buy. When the ratio of puts to
calls is rising, it is usually a sign investors are growing more nervous. A
ratio above 1 is considered bearish. The Fear & Greed Index uses a bearish
options ratio as a signal for Fear.


market volatility
neutral


VIX AND ITS 50-DAY MOVING AVERAGE

VIX

50-day moving average


VIX and its 50-day moving average The most well-known measure of market
sentiment is the CBOE Volatility Index, or VIX. The VIX measures expected price
fluctuations or volatility in the S&P 500 Index options over the next 30 days.
The VIX often drops on days when the broader market rallies and soars when
stocks plunge. But the key is to look at the VIX over time. It tends to be lower
in bull markets and higher when the bears are in control. The Fear & Greed Index
uses increasing market volatility as a signal for Fear.                  



35.00

30.00

25.00

20.00

15.00



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
VIX
18.84
50-day MA
19.01


Last updated May 25 at 10:47 AM EDT

The most well-known measure of market sentiment is the CBOE Volatility Index, or
VIX. The VIX measures expected price fluctuations or volatility in the S&P 500
Index options over the next 30 days. The VIX often drops on days when the
broader market rallies and soars when stocks plunge. But the key is to look at
the VIX over time. It tends to be lower in bull markets and higher when the
bears are in control. The Fear & Greed Index uses increasing market volatility
as a signal for Fear.


safe haven demand
extreme fear


DIFFERENCE IN 20-DAY STOCK AND BOND RETURNS


Difference in 20-day stock and bond returns Stocks are riskier than bonds. But
the reward for investing in stocks over the long haul is greater. Still, bonds
can outperform stocks over short periods. Safe Haven Demand shows the difference
between Treasury bond and stock returns over the past 20 trading days. Bonds do
better when investors are scared. The Fear & Greed Index uses increasing safe
haven demand as a signal for Fear.                    
Stocks outperforming Bonds
Bonds outperforming Stocks


15.00%

10.00%

5.00%

0.00%

-5.00%

-10.00%



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
-0.53%


Last updated May 25 at 10:46 AM EDT

Stocks are riskier than bonds. But the reward for investing in stocks over the
long haul is greater. Still, bonds can outperform stocks over short periods.
Safe Haven Demand shows the difference between Treasury bond and stock returns
over the past 20 trading days. Bonds do better when investors are scared. The
Fear & Greed Index uses increasing safe haven demand as a signal for Fear.


junk bond demand
extreme fear


YIELD SPREAD: JUNK BONDS VS. INVESTMENT GRADE


Yield spread: junk bonds vs. investment grade Junk bonds carry a higher risk of
default compared to other bonds. Bond yields – or the return you get on
investing in a bond - dip when prices go up. If investors crave junk bonds, the
yields drop. Likewise, yields rise when people are selling. So a smaller
difference (or spread) between yields for junk bonds and safer government bonds
is a sign investors are taking on more risk. A wider spread shows more caution.
The Fear & Greed Index uses junk bond demand as a signal for Greed.            
       


2.10%

2.00%

1.90%

1.80%

1.70%

1.60%



Jul 2021

Oct

Jan 2022

Apr




May 25, 2021
1.98%


Note: The frequent drops of the yield spread on the Junk Bond Demand chart
usually appear on the ex-dividend date. The spread typically bounces back after
the dividend is paid and normalizes over time.

Last updated May 25 at 10:23 AM EDT

Junk bonds carry a higher risk of default compared to other bonds. Bond yields –
or the return you get on investing in a bond - dip when prices go up. If
investors crave junk bonds, the yields drop. Likewise, yields rise when people
are selling. So a smaller difference (or spread) between yields for junk bonds
and safer government bonds is a sign investors are taking on more risk. A wider
spread shows more caution. The Fear & Greed Index uses junk bond demand as a
signal for Greed.



FEAR & GREED INDEX FAQS

What is the CNN Business Fear & Greed Index?

The Fear & Greed Index is a way to gauge stock market movements and whether
stocks are fairly priced. The theory is based on the logic that excessive fear
tends to drive down share prices, and too much greed tends to have the opposite
effect.

How is Fear & Greed Calculated?

The Fear & Greed Index is a compilation of seven different indicators that
measure some aspect of stock market behavior. They are market momentum, stock
price strength, stock price breadth, put and call options, junk bond demand,
market volatility, and safe haven demand. The index tracks how much these
individual indicators deviate from their averages compared to how much they
normally diverge. The index gives each indicator equal weighting in calculating
a score from 0 to 100, with 100 representing maximum greediness and 0 signaling
maximum fear.

How often is the Fear & Greed Index calculated?

Every component and the Index are calculated as soon as new data becomes
available.

How to use Fear & Greed Index?

The Fear & Greed Index is used to gauge the mood of the market. Many investors
are emotional and reactionary, and fear and greed sentiment indicators can alert
investors to their own emotions and biases that can influence their decisions.
When combined with fundamentals and other analytical tools, the Index can be a
helpful way to assess market sentiment.

Return to Fear & Greed Index
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