Fear & Greed Index
July 27, 2015
eResearch Corporation is pleased to provide a reading of CNNMoney’s Fear & Greed
Index.
Investors are driven by two emotions: fear and greed. Too much fear can sink stocks
well below where they should be. When investors get greedy, they can bid up stock
prices way too far.
So, what emotion is driving the market now? CNNMoney's Fear & Greed index gives the
answer.
CNNMoney looks at 7 Indicators:
● Market Momentum: The S&P 500 (SPX) versus its 125-day moving average
● Market Volatility: The VIX (VIX), which measures volatility
● Safe Haven Demand: The difference in returns for stocks versus Treasuries
● Junk Bond Demand: The spread between yields on investment grade bonds and
junk bonds
● Stock Price Breadth: The volume of shares trading in stocks on the rise versus
those declining
● Stock Price Strength: The number of stocks hitting 52-week highs and lows on the
New York Stock Exchange
● Put and Call Options: The put/call ratio, which compares the trading volume of
bullish call options relative to the trading volume of bearish put options
Each Indicator is analyzed to see how far it has veered from its average relative to how
far it normally veers. Each Indicator is rated on a scale from 0 - 100. The higher the
reading, the greedier investors are being; 50 is neutral.
Then all the Indicators are put together, equally weighted, for a final index reading.
The Fear & Greed Index readings for July 27 are shown on the following page. The
overall current score is: 7 – Extreme Fear.
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Page 1
Fear & Greed Index
Key:
Status
Reading
Extreme Fear
0-25
Fear
26-44
Neutral
45-55
Greed
56-74
Extreme Greed 75-100
Readings: Index
Date
15-Jun-15
16-Jun-15
17-Jun-15
19-Jun-15
22-Jun-15
24-Jun-15
25-Jun-15
26-Jun-15
29-Jun-15
2-Jul-15
6-Jul-15
7-Jul-15
8-Jul-15
10-Jul-15
13-Jul-15
14-Jul-15
15-Jul-15
16-Jul-15
17-Jul-15
20-Jul-15
21-Jul-15
27-Jul-15
Status
Extreme Fear
Fear
Fear
Fear
Fear
Fear
Fear
Fear
Extreme Fear
Extreme Fear
Extreme Fear
Extreme Fear
Extreme Fear
Extreme Fear
Extreme Fear
Fear
Fear
Fear
Fear
Fear
Fear
Extreme Fear
Reading
25
28
26
28
33
34
33
34
11
16
12
13
8
15
25
27
26
29
32
37
23
7
Week Ago
36
32
41
30
26
26
34
30
42
34
11
11
17
17
13
12
8
9
14
22
25
36
Month Ago Year Ago
59
87
39
86
65
88
62
95
60
95
60
83
44
83
50
77
43
76
43
87
40
87
40
81
36
68
41
57
30
57
30
60
26
56
28
55
26
35
30
46
30
36
33
34
<continued>
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Page 2
Readings: Indicators
Market
Date
Momentum
15-Jun-15 Ext. Fear
16-Jun-15 Ext. Fear
17-Jun-15 Ext. Fear
19-Jun-15 Ext. Fear
22-Jun-15
Fear
24-Jun-15 Ext. Fear
25-Jun-15 Ext. Fear
26-Jun-15 Ext. Fear
29-Jun-15 Ext. Fear
2-Jul-15 Ext. Fear
6-Jul-15 Ext. Fear
7-Jul-15 Ext. Fear
8-Jul-15 Ext. Fear
10-Jul-15 Ext. Fear
13-Jul-15 Ext. Fear
14-Jul-15 Ext. Fear
15-Jul-15 Ext. Fear
16-Jul-15
Fear
17-Jul-15
Neutral
20-Jul-15
Neutral
21-Jul-15
Fear
27-Jul-15 Ext. Fear
Market
Volatility
Fear
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Ext. Fear
Fear
Fear
Neutral
Ext. Fear
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Neutral
Safe Haven
Demand
Fear
Fear
Fear
Ext. Fear
Ext. Fear
Fear
Neutral
Ext. Greed
Ext. Fear
Fear
Ext. Fear
Fear
Ext. Fear
Fear
Ext. Greed
Greed
Neutral
Greed
Neutral
Greed
Fear
Ext. Fear
Junk Bond
Demand
Fear
Neutral
Fear
Neutral
Greed
Neutral
Ext. Fear
Fear
Fear
Fear
Fear
Fear
Ext. Fear
Fear
Neutral
Fear
Fear
Fear
Fear
Fear
Fear
Ext. Fear
Stock Price Stock Price
Breadth
Strength
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Neutral
Neutral
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Put & Call
Options
Neutral
Neutral
Neutral
Neutral
Greed
Greed
Greed
Neutral
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Ext. Fear
Fear
Neutral
Fear
Ext. Fear
Indicators:
Market Momentum: Extreme Fear
The S&P 500 is 1.13% 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.
Market Volatility: Neutral
The CBOE Volatility Index (VIX) is at 15.60. This is a neutral reading and indicates that
market risks appear low.
<continued>
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Page 3
Safe Haven Demand: Extreme Fear
Bonds have outperformed stocks by 4.57 percentage points during the last 20 trading
days. This is close to the weakest performance for stocks relative to bonds in the past
two years and indicates investors are fleeing risky stocks for the safety of bonds.
Junk Bond Demand: Extreme Fear
Investors in low quality junk bonds are demanding 2.11 percentage points in additional
yield over safer investment grade corporate bonds. This spread is much higher than
what has been typical during the last two years and indicates that investors are highly
risk averse.
Stock Price Breadth: Extreme Fear
The McClellan Volume Summation Index measures advancing and declining volume on
the NYSE. During the last month, approximately 19.54% more of each day's volume has
traded in declining issues than in advancing issues, pushing this indicator towards the
lower end of its range for the last two years.
Stock Price Strength: Extreme Fear
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.
Put and Call Options: Extreme Fear
During the last five trading days, volume in put options has lagged volume in call
options by 26.41% as investors make bullish bets in their portfolios. However, this is
still among the highest levels of put buying seen during the last two years, indicating
extreme fear on the part of investors.
*****
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Page 4