The CNN Fear & Greed Index summarizes market psychology as one number from 0 (extreme fear) to 100 (extreme greed).
1. What it blends
It combines seven indicators: price momentum, price strength, market breadth, put/call ratio, junk-bond demand, volatility (VIX) and safe-haven demand.
2. How to read it
- Extreme fear (0–25): possibly oversold — of interest to contrarians
- Extreme greed (75–100): possibly overheated — tighten risk management
It echoes "be greedy when others are fearful, fearful when others are greedy."
3. Caution
Sentiment gauges don't time turns precisely — greed can run longer, fear can deepen. Use it as a secondary signal.