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What Is The Fear & Greed Index?

|Includes: SPDR S&P 500 Trust ETF (SPY), VXX

Our popular indicator to find out market's sentiment is CNNMoney's Fear & Greed index. The Fear & Greed index is composed of 7 indicators:

  • Stock Price Momentum: S&P 500 versus its 125-day MA
  • Stock Price Strength: the number of stocks hitting 52-week highs and lows on NYSE
  • Stock Price Breadth: the volume of rising stock volume versus declining volume
  • Put and Call Options: the put/call ratio
  • Junk Bond Demand: the spread between yields on investment grade bonds and junk bonds
  • Market Volatility: the VIX
  • Safe Haven Demand: the difference in returns for stocks versus Treasuries

The index is scaled from 0-100, where the higher reading indicating more greed and 50 is neutral.

Detail explanation can be reviewed here at CNNMoney.

The latest number on Fear & Greed Index can be read here.