Market Temperature (10/25)

The fear and greed index was developed by CNNMoney to measure two of the primary emotions that influence how much investors are willing to pay for stocks.

The fear and greed index is measured on a daily, weekly, monthly, and yearly basis. In theory, the index can be used to gauge whether the stock market is fairly priced. This is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.

Fear & Greed Index
What emotion is driving the market?

Market Momentum: Greed
The S&P 500 is 4.64% above its 125-day average. This is further above the average than has been typical during the last two years and indicates greed on the part of investors.

Last changed Oct 19 from a Neutral rating.

Put and Call Options: Extreme Greed
During the last five trading days, volume in put options has lagged volume in call options by 59.12% as investors make bullish bets in their portfolios. This is among the lowest levels of put buying seen during the last two years, indicating extreme greed on the part of investors.

Last changed Oct 20 from a Greed rating.

Stock Price Breadth: Neutral
The McClellan Volume Summation Index measures advancing and declining volume on the NYSE. During the last month, approximately 10.02% more of each day's volume has traded in advancing issues than in declining issues. This indicates that market breadth is improving, though the McClellan Oscillator is in the middle of its range for the last two years and is neutral.

Last changed Oct 18 from a Fear rating.