Market temperature (2/8)

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

What emotion is driving the stock market?

Investors in low quality junk bonds are accepting 1.76 percentage points in additional yield over safer investment grade corporate bonds. While this spread is historically high, it is in-line with recent price history and indicates that investors are not showing significant fear or greed in the corporate bond market.

Last changed Jan 31 from a Greed rating.

The S&P 500 is 1.50% 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.

The number of stocks hitting 52-week lows exceeds the number hitting highs and is at the lower end of its range, indicating extreme fear.

Last changed Jan 20 from a Fear rating.