Stock Market hits its highest level of Greed since March 13 and is on the verge of Extreme Greed!

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This index measures investor sentiment and is based on seven different indicators:

  • Stock Price Momentum: The S&P 500’s current level compared to its 125-day moving average.
  • Stock Price Strength: The number of stocks hitting 52-week highs versus those hitting 52-week lows on the NYSE.
  • Stock Price Breadth: The McClellan Volume Summation Index, which measures the volume of advancing and declining stocks.
  • Put and Call Options: The ratio of put options (bets that stocks will fall) to call options (bets that stocks will rise).
  • Market Volatility: The VIX (Volatility Index), which measures expected price fluctuations in the S&P 500.
  • Safe Haven Demand: The difference in returns between stocks and Treasury bonds over the past 20 trading days.
  • Junk Bond Demand: The spread between yields on investment-grade bonds and junk bonds.
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Sources:

https://www.cnn.com/markets/fear-and-greed

https://markets.businessinsider.com/news/stocks/fear-greed-index-remains-in-extreme-greed-zone-s-p-500-surges-24-in-2023-1032935828

h/t IAmNotAnEconomist