Market temperature (1/4)

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?

The S&P 500 is 6.13% above its 125-day average. This is further above the average than has been typical during the last two years and rapid increases like this often indicate extreme greed.

Last changed Dec 22 from a Greed rating.

The McClellan Volume Summation Index measures advancing and declining volume on the NYSE. During the last month, approximately 8.93% more of each day's volume has traded in advancing issues than in declining issues, pushing this indicator towards the upper end of its range for the last two years.

Last changed Dec 30 from a Fear rating.

During the last five trading days, volume in put options has lagged volume in call options by 52.77% as investors make bullish bets in their portfolios. However, this is still among the highest levels of put buying seen during the last two years, indicating fear on the part of investors.

Last changed Dec 15 from an Extreme Fear rating.