Market Fear & Greed Index
A composite indicator measuring investor sentiment from 0 (Extreme Fear) to 100 (Extreme Greed), based on 4 market signals.
Frequently Asked Questions
What does the Fear and Greed Index measure?
The Fear and Greed Index measures overall investor sentiment on a scale from 0 to 100. It combines four market signals: market momentum (S&P 500 trend), stock price breadth (advancing vs declining stocks), market volatility (VIX), and safe haven demand (gold price movement). Each factor contributes 25% to the composite score.
How can I use the Fear and Greed Index for investing?
Many contrarian investors use extreme readings as potential signals. When the index shows extreme fear (below 20), it may indicate overselling and a potential buying opportunity. When it shows extreme greed (above 80), markets may be overextended. However, it should be used alongside other analysis, not as a standalone trading signal.
What do extreme fear and extreme greed readings mean?
Extreme fear (0-20) suggests investors are highly risk-averse, selling stocks and moving to safe assets like bonds and gold. Extreme greed (80-100) suggests investors are aggressively buying and taking on excessive risk. Both extremes can signal potential market turning points, though markets can remain in extreme territory for extended periods.
How often is the Fear and Greed Index updated?
Our Fear and Greed Index is updated regularly during market hours using real-time data from market indicators. The underlying components (S&P 500 momentum, VIX, breadth indicators, and gold prices) change continuously throughout the trading day, so the composite score reflects current market conditions.
Is the Fear and Greed Index a reliable indicator?
The index is a useful gauge of overall market sentiment but should not be used as the sole basis for investment decisions. It works best as a supplementary tool alongside fundamental and technical analysis. Historically, extreme readings have often coincided with market turning points, but the timing is never precise.
What is the Fear & Greed Index?
The Market Informative Fear & Greed Index measures investor sentiment on a scale of 0 to 100. A score near 0 indicates extreme fear — investors are selling and moving to safe assets. A score near 100 indicates extreme greed — investors are buying aggressively and taking on risk.
Our index combines four key market signals: Market Momentum (S&P 500 direction), Stock Price Breadth (advancing vs declining stocks), Market Volatility (VIX fear gauge), and Safe Haven Demand (gold price movement). Each factor contributes 25% to the final score.
Warren Buffett famously said, "Be fearful when others are greedy, and greedy when others are fearful." Use this index as one of many tools to gauge market sentiment — extreme readings in either direction often signal potential turning points.