Market temperature (1/26)

Trader Watcher wrote a column · Jan 26, 2022 10:43

The fear and greed index is a tracker to measure two of the primary emotions that influence how much investors are willing to pay for stocks and cryptos.

Be fearful when others are greedy. Be greedy when others are fearful.---Warren Buffett

Fear & Greed Index
What emotion is driving the stock market?

What emotions and sentiments of crypto market?

Market Momentum: Extreme Fear

The S&P 500 is 4.22% below its 125-day average. During the last two years, the S&P 500 has typically been above this average, so rapid declines like this indicate extreme levels of fear.

Last changed Jan 14 from a Fear rating.

Market Volatility: Extreme Fear

The CBOE Volatility Index (VIX) is at 31.16 and indicates that investors remain concerned about declines in the stock market.

Last changed Jan 20 from a Neutral rating.

Junk Bond Demand: Extreme Greed

Investors in low quality junk bonds are accepting 1.57 percentage points in additional yield over safer investment grade corporate bonds. While this spread is historically high, it is sharply lower than recent prices and suggests that investors are pursuing higher risk strategies.

Last changed Dec 3 from a Greed rating.