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The Fear and Greed Index measures stock market sentiment on a scale of 0 to 100. A score near 0 signals Extreme Fear — investors are panicking and prices may be oversold. A score near 100 signals Extreme Greed — investors are overconfident and prices may be stretched. It is used as a contrarian indicator to identify potential turning points in market sentiment.

Our index uses 5 independent components drawn entirely from public market data: Market Volatility (VIX vs its 20-day moving average, weighted 25%), Market Momentum (S&P 500 vs its 125-day MA, 25%), Put/Call Ratio (options sentiment, 20%), Safe Haven Demand (stocks vs bonds 20-day return, 15%), and Junk Bond Appetite (high yield vs investment grade, 15%). All data is fetched from Yahoo Finance — no third-party index dependency.

Each of the 5 components captures a distinct dimension of market sentiment with minimal overlap. Volatility (25%) and momentum (25%) carry the heaviest weights because they are the most direct, real-time measures of how the market is actually moving — VIX reflects forward-looking risk pricing, while the 125-day moving average reflects the underlying trend. Put/call ratio (20%) adds a positioning layer showing how investors are hedging in real time. Safe haven demand (15%) and junk bond appetite (15%) capture cross-asset risk appetite, which often turns before equity sentiment does. The 25/25/20/15/15 weighting is designed to prioritize signals with the highest signal-to-noise ratio. Some sentiment indices use 6, 7, or more components, but adding more inputs frequently introduces redundancy — multiple components measuring the same underlying behavior, or slow-moving breadth metrics that lag price action by days or weeks. Our approach is to measure fewer things, but measure them well, using only signals that update intraday and reflect what investors are actually doing right now.

Extreme Fear (score 0–20) means investors are highly risk-averse, selling stocks aggressively, and seeking safety in bonds and cash. The VIX volatility index is typically elevated, and put options outnumber calls significantly. Historically, extreme fear readings have often coincided with market bottoms — though timing is unpredictable and past patterns do not guarantee future results.

Extreme Greed (score 80–100) means investors are aggressively buying stocks, market volatility is low, and call options dominate. Markets in this zone may be overbought or overvalued relative to fundamentals. Historically, extreme greed has sometimes preceded pullbacks — but markets can remain greedy for extended periods before correcting.

The index uses real market data (VIX, S&P 500 moving averages, put/call ratios, bond spreads) to provide a data-driven snapshot of market sentiment. Our historical backtest shows that extreme fear readings have correlated with above-average forward returns in the S&P 500, while extreme greed has sometimes preceded pullbacks. However, it should not be relied upon to make financial decisions as data provided herein may be inaccurate. Past patterns do not predict future results. Please consult a qualified financial professional before making any investment decisions.

The index is recalculated from live market data on every page load, with a 15-minute server cache. The daily score is recorded automatically after US market close each weekday, building the historical database used in the backtest section. Market data may be delayed up to 15 minutes during trading hours. Sign up for email alerts to be notified when the index crosses into extreme territory.