Professional stock charts with an AI analyst

The top-line score averages the seven indicators below. Historically, extreme fear has marked bottoms in the market (traders are panicking and stocks are oversold), while extreme greed has often preceded pullbacks (traders are complacent and prices have gotten ahead of fundamentals). It’s a contrarian signal, not a timing tool.

How to read the number: 0–24 is extreme fear, 25–44 is fear, 45–55 is neutral, 56–75 is greed, and 76–100 is extreme greed.

How far the S&P 500 is above or below its 125-day moving average. A market trading well above its trend line means buyers are in control (greed). Dropping below trend is a red flag that momentum is breaking (fear).

How to read the number: the further the S&P 500 sits above its 125-day moving average, the greedier the reading. The moment it breaks below the moving average, the indicator flips to fear.

The count of NYSE stocks hitting 52-week highs versus 52-week lows. If many more stocks are breaking out to new highs than new lows, the rally is broad-based (greed). A surge in new lows means damage is spreading across the market (fear).

How to read the number: when new highs meaningfully outnumber new lows, the signal is greed. When new lows dominate, it’s fear. A roughly even split lands in the neutral zone.

The McClellan Volume Summation Index — essentially, how much volume is flowing into rising stocks versus falling stocks. Steady inflows into advancers confirm a healthy uptrend (greed); shrinking breadth on rallies warns that fewer names are participating (fear).

How to read the number: a rising McClellan index means volume is concentrated in advancing stocks (greed). A falling index means decliners are winning the volume battle (fear).

The CBOE put/call ratio. Puts are bets on prices falling; calls are bets on prices rising. When put volume spikes relative to call volume, traders are hedging or betting against the market (fear). Heavy call buying shows traders chasing upside (greed).

How to read the number: a ratio above 1.0 means more puts are trading than calls — considered bearish. A ratio below roughly 0.7 means calls dominate and is read as bullish greed. A rising ratio over time is usually a sign investors are growing nervous.

The VIX — the market’s expected 30-day volatility priced into S&P 500 options — compared to its 50-day average. A rising VIX means traders are paying up for downside protection (fear). A sleepy, low VIX reflects complacency (greed).

How to read the number: VIX above 25–30 (or well above its 50-day average) is typically fear. VIX below 15 reflects complacency and is read as greed. Readings of 15–25 are roughly normal.

The 20-day return on stocks minus the 20-day return on Treasury bonds. When bonds outperform stocks over three weeks, investors are rotating into safety (fear). When stocks outperform, investors are embracing risk and ignoring bonds (greed).

How to read the number: a positive spread (stocks beating bonds over 20 days) is greed. A negative spread (bonds winning) is fear. The wider the spread in either direction, the stronger the signal.