#MarketGreedRising Fear & Greed Index – Fear and Greed Index

What is it?

Developed by CNN Money (now CNN Business) since 2012, this index measures the sentiment in the US stock market on a scale from 0 to 100, where:

• 0–24 indicates Extreme Fear

• 25–49 — Fear

• 50 — Neutral

• 51–74 — Greed

• 75–100 — Extreme Greed

• How is it calculated?

It combines seven equally weighted indicators:

• Price momentum

1 • Price strength

3 • Market breadth

4 • Put/call ratio

5 • Volatility (like the VIX)

6 • Demand for junk bonds

7 • Demand for safe haven assets

How to interpret?

• A high value (around 75–100) may indicate an overheated market, with a risk of correction.

• A very low value (0–24) may signal extreme pessimism conditions, perhaps a good buying opportunity.

• However, the index reflects emotions and not necessarily fundamentals — it should be used as a complement, not as a standalone decision-making tool.

Current Situation (August 2025)

The index was at 59 on August 8, 2025, signaling a climate of Greed, albeit moderate. Recently, there have been moments of Extreme Greed, with readings above 75, but currently, the scenario is more controlled.

Why does this matter?

This index provides a succinct view of the emotions driving the market — optimism and euphoria can push it to the top, while extreme fear may indicate that the market has already priced in too many risks. But again, it is essential to analyze other data (such as corporate earnings, macroeconomic indicators, and others) to form a complete view.