'Extreme Fear' Grips the Market for the First Time Since November 2022 (FTX Collapse)
Definition of Fear & Greed Index The Fear & Greed Index operates from a scale of 0 to 100. When the scale hits below 45, it indicates fear and a score of 55 and above would imply greed. The in-between would be neutral. Scores below 25 and above 75 are labeled as extreme fear and extreme greed respectively. The primary use of the scale is to measure the prevailing emotions influencing the stock market by weighing seven key factors (Liguid ,2025). The seven key factors are: Stock Price Momentum → Evaluate S&P’s 500 position relative to its 125 moving average Stock Price Strength → The number of stocks on the NYSE at 52-week highs compared to those at 52-week lows Stock Price Breadth → Analyse trading volumes that are rising compared to the number of shares that are falling Pull and Call Options → Examine the ratio of put to call options Junk Bond Demand → measures the yield spread between investment-grade bonds and junk bonds Market Volatility → The VIX measures expect...