The Fear & Greed Index is a sentiment indicator designed to gauge the overall emotional state of stock market participants, oscillating between Fear and Greed. It helps investors understand market extremes, potentially identifying over-sold (fearful) or over-bought (greedy) conditions.
Interpreting the Index (Typical Ranges)
Extreme Fear (0-25): Widespread pessimism.
Fear (25-45): General caution.
Neutral (45-55): Balanced sentiment.
Greed (55-75): Growing optimism.
Extreme Greed (75-100): High levels of euphoria/complacency.
How to Use This Dashboard
Gauge: Shows the most recent Fear & Greed score and its corresponding sentiment category (e.g., Fear, Greed).
Line Chart: Displays the historical trend of the index over time.
Time Period Buttons (1W, 1M, 1Y, 5Y, All): Click these buttons above the line chart to view the historical data for the selected period. 'All' shows the full available history.
Hovering: Hover your mouse over the line chart to see the specific date, score, and sentiment for that point in time.
Tips for Interpretation
Contrarian Indicator: Extreme Fear might signal potential buying opportunities (when others are overly pessimistic), while Extreme Greed could indicate market tops or increased risk (when others are overly optimistic).
Context Matters: Use this index alongside other forms of analysis (fundamental, technical). It reflects sentiment, not guarantees.
Not a Timing Tool: Markets can remain in Fear or Greed zones for extended periods. Don't rely solely on this index for exact entry or exit points.
Trends: Look for trends and divergences. Is the index moving sharply towards an extreme? Is it diverging from the market price action?
Frequently Asked Questions (FAQ)
Why is some historical data missing (e.g., between 2020 and 2022)? The historical in this page ends in late 2020. The live data source might be a gap in the data displayed on the chart during this period.
Is the "Current Sentiment" real-time? The live data is periodically (e.g., every 15 minutes) from a third-party endpoint. There might be a slight delay compared to the absolute latest market tick.
Can I trust the data source? The live data comes from an endpoint used by CNN's visuals. While generally reliable, it's unofficial and could change.