Fear & Greed Index: 25/100 - Fear/Greed - CNN

The CNN Business Fear & Greed Index currently stands at 25 out of 100, indicating a reading of "Fear" within the 25–49 range according to the index. This level suggests heightened caution among investors, driven by several key market indicators. Market momentum has weakened, with the S&P 500 trading below its 125-day moving average, a sign of declining optimism. Additionally, the put/call ratio—a measure of options activity—has risen above 1, reflecting increased demand for protective puts as investors hedge against potential declines.

Market breadth remains weak, with a lower ratio of stocks hitting 52-week highs versus lows on the NYSE, signaling uneven performance across the market. Safe haven demand has also intensified, as Treasury bonds have outperformed stocks over the past 20 trading days, a common trend during periods of uncertainty. Meanwhile, the CBOE Volatility Index (VIX) has risen above its 50-day moving average, underscoring elevated expectations of near-term price swings.

The Fear & Greed Index synthesizes seven equally weighted indicators to gauge sentiment, including volatility, options activity, and asset allocation shifts according to the methodology. A score of 25 suggests investors may be overreacting to risks, potentially creating oversold conditions. However, the index does not predict precise market movements and should be used alongside fundamental and technical analysis. Historically, extreme fear readings have sometimes coincided with market turning points, though persistence of fear can prolong downturns. Investors are advised to assess broader economic trends and avoid emotionally driven decisions during volatile periods.

Source: CNN Business, Fear & Greed Index methodology: CNN Business, Fear & Greed Index methodology.
Source: Heygotrade, Guide to Understanding the Fear & Greed Index: Heygotrade, Guide to Understanding the Fear & Greed Index.
Source: CoinMarketCap, Volatility and Derivatives Market Metrics: CoinMarketCap, Volatility and Derivatives Market Metrics.