Market Structure

Fear & Greed Index

A composite sentiment indicator (0-100) measuring market emotions from extreme fear to extreme greed across seven factors.

Explained Simply

The CNN Fear & Greed Index combines seven indicators: market momentum (S&P 500 vs 125-day MA), stock price strength (52-week highs vs lows), stock price breadth (advancing vs declining volume), put/call ratio, junk bond demand (yield spread), market volatility (VIX), and safe haven demand (stocks vs bonds). Extreme fear (<25) often marks bottoms; extreme greed (>75) often marks tops.

How Tradewink Uses Fear & Greed Index

Fear & Greed extremes are a key input to our macro alert signals. Extreme fear triggers "buy the fear" alerts for high-quality stocks at oversold levels. Extreme greed triggers caution alerts recommending reduced exposure and tighter stops. The index is also displayed in our daily market pulse briefings and used by the regime detector as a supplementary feature.

Related Terms

See Fear & Greed Index in action

Tradewink uses fear & greed index as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.