The Fear and Greed Index is indeed a useful tool to gauge market sentiment. When it flashes a red sign, indicating extreme greed, it often signals that the market might be overvalued and due for a correction. Historically, periods of high market euphoria have been followed by pullbacks.
Fear and Greed index is flashing a red sign today
Indicating a lot of market euphoria
This is usually followed by market pullbacks
Except around Dec 2023 pic.twitter.com/jbOPNyv9wW
— Bravos Research (@bravosresearch) October 25, 2024
2/ Stocks have hit the "extreme greed" level on the fear and greed index
This sentiment measure was developed by CNN pic.twitter.com/xVVuUV2GA4
— Bravos Research (@bravosresearch) October 24, 2024
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