Market temperature (12/6)

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.

Feer & Greed Index
What emotion is driving the market?

Investors in low quality junk bonds are accepting 1.85 percentage points in additional yield over safer investment grade corporate bonds. While this spread is historically high, it is low compared to recent history and suggests that investors are pursuing higher risk strategies.

Last changed Dec 2 from an Extreme Greed rating.

The S&P 500 is 1.98% above its 125-day average. During the last two years, the S&P 500 has typically been further above this average than it is now, indicating that investors have become less confident in market returns going forward.

Last changed Dec 2 from a Fear rating.

The McClellan Volume Summation Index measures advancing and declining volume on the NYSE. During the last month, approximately 14.93% more of each day's volume has traded in declining issues than in advancing issues, pushing this indicator towards the lower end of its range for the last two years.

Last changed Dec 1 from a Fear rating.