Fear & Greed Index November 2024: 10 Stock Sentiment Charts
Our live fear and greed index charts enable you to see the sentiment of investors, the turning points between bull and bear stock markets, and know when to buy and sell stocks.
Our Fear and Greed Index has ten real-time and historical charts to help you understand investor sentiment and know when to buy and sell stocks today. We stream Federal Reserve, AAII, VIX CBOE, and 15 stock price technical signals.
This is a modern take on the CNN Fear and Greed Index. Using modern sentiment indicators and important core technical analysis, you can easily understand and evaluate the state of fear and greed in the current US stock markets.
What is a Fear and Greed Index?
A fear and greed index helps you understand fear (bear market selling) and greed (bull market buying) in the stock market.
This fear and greed index brings together stock market price, volume, and sentiment data to enable investors to make better investing decisions and understand the current psychology of stock market investors.
Our fear and greed index charts estimate investor sentiment in the stock market. When investors feel greedy, they buy stocks, which pushes prices up by increasing demand.
When people feel fear, they sell stocks, which decreases stock prices and increases volatility as measured by the CBOE VIX index.
Fear = Sell = More Supply of Stocks for Sale = Stock Price Decreases.
Greed = Buy = More Demand for Stocks = Stock Price Increases
Fear & Greed Index Video
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10 Fear and Greed Index Charts & Indicators
This fear and greed index has ten charts, including the CBOE Volatility Index (VIX), the NYSE Advance-Decline Ratio (ADR), the S&P 500 Weekly Chart, the Federal Reserve Bank Kansas Financial Stress Index, and the AAII Sentiment Indicator.
Ultimately, fear and greed are expressed in the 26 technical indicators of the S&P 500, providing an accurate picture of the market action.
The CNN fear and greed index often gives an unclear picture of traders’ and investors’ sentiments.
1. Fear & Greed Index
Our first chart is a fear and greed index indicator, a buy-and-sell gauge powered by TradingView. This index is an excellent way to measure fear and greed, combining 16 of the most popular technical supply and demand price and volume indicators to establish a buy-and-sell signal.
- Strong Sell = Extreme Fear
- Sell = Fear
- Neutral = Balance
- Buy = Greed
- Strong Buy = Extreme Greed
Find out more about the technical fear and greed indicators.
Fear & Greed Index S&P 500 Buy Sell Rating
2. CBOE VIX Volatility
The Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) measures fear by comparing the price volatility of Put Options versus Call Options. Put Options are purchased when a market participant believes the stock price will go down; this protects their assets, like insurance.
A Call Option is purchased when a trader believes that the stock price will increase.
Ultimately, the index measures the volatility of those prices. A low VIX price indicates a good market and that stock prices will continue on their normal upward trajectory.
How Does the VIX Fear Gauge Work?
A high VIX price above 30 indicates that more Put contacts are being purchased, that investors are fearful, and that they are covering their trades with downside insurance.
A VIX Volatility Index Above 30 Indicates Fear.
CBOE Volatility Index – >30 = Fear – < 20 = Greed
Powered by Chicago Board Options Exchange, CBOE Volatility Index: VIX [VIXCLS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/VIXCLS
3. NYSE Advance-Decline Ratio
The New York Stock Exchange Advance Decline Ratio is the number of stocks with a price increase for the day divided by the number of stocks with a price decline for the day. Price is ultimately the decider of fear and greed, and rising stock prices mean people feel bullish.
How does the NYSE A/D Ratio work?
A ratio of 1 means that there was one advancing stock for every one declining stock; above two means that the market is in greed mode, with two stocks rising to every one falling.
Tip: Use the mouse scroll wheel to change and interact with the chart timeframes
Fear and Greed Index NYSE A/D Ratio < 1 Fear – > 2 Greed
4. S&P 500 Weekly Moving Averages
Here, we take the S&P500 weekly chart and plot a 9-period moving average. The price line is the thicker blue line, and the moving average is the thinner line. When the price is above the moving average indicator, this is bullish, meaning the main price trend is up; therefore, investors are greedy.
How does the S&P500 Chart Work?
When the price line is below the moving average, this indicates fear. We are using a weekly line chart to estimate the market’s long-term trend; this helps you make better long-term investing decisions.
Tip: Use the mouse scroll wheel to change and interact with the chart timeframes
S&P 500 Weekly – Fear = Price < Moving Average – Greed = Price > Moving Average
5. Federal Reserve Bank Financial Stress Index
Financial stress is defined as interruptions to the normal functioning of the financial markets. This important leading indicator, published monthly, gives valuable insight into investor stress in the financial markets. Measures include the TED spread, Swap spread, Stock Bond Correlation, Bank Stock Volatility, and more.
How Does the Financial Stress Index Work?
When the value line is above zero or positive, this indicates that financial stress is above the historical average (fear). A value below zero indicates the normal functioning of the markets (greed). A value above 0.8 typically indicates severe stress and fear in the markets; this occurred in 1999, 2007, and 2020. In September 2008, the index spiked to a value of 6.
Tip: Use the mouse scroll wheel to interact with the chart timeframes. Scroll back to 1999 and 2007 to see the rise of the stress line.
Kansas City Financial Stress Index – Extreme Fear = Price > 1 – Greed = Price < 1
6. AAII Sentiment Indicator
The American Association of Independent Investors (AAII) Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership every week. On the chart, the central horizontal line represents the average bullish sentiment over the period; 0.35 means 35% of investors polled were optimistic that the stock market would rise over the next six months.
At the extremes, the AAII sentiment indicator registered 0.2, or 20% of investors were bullish at the worst point in the financial crisis in December 2007. The highest level of bullish sentiment was on December 20, 1999, when 75% of investors were bullish; this was during the Dotcom bubble hype a few months before the crash.
How does AAII Sentiment work?
This indicator is best used as a contrarian indicator; when sentiment is extremely high, it indicates a need to sell, and when it is extremely low, it indicates a need to buy stocks. As Warren Buffet says, “Be fearful when others are greedy and greedy when others are fearful.”
Historical Average 0.36 – Fear < 0.25 – Greed > 0.50
7. S&P 500 Fear & Greed
8. NASDAQ 100 Fear & Greed
9. Dow Jones 30 Fear & Greed
10. DJ 20 Transports Fear & Greed
Fear & Greed Buy/Sell Gauges
The four fear and greed indicators above are powered by TradingView, which cleverly designed these Buy-Sell Gauges based on technical analysis. Technical Analysis evaluates market direction using stock price and volume to determine underlying supply and demand.
This is a much better indicator than, for example, the AAII Sentiment indicator because, as we know, most investors are wrong at key points in the major market turns. The buy-sell indicators are based on 26 different well-established technical indicators:
Moving Averages
- 6 Simple Moving Averages with timeframes 10, 20, 30, 50, 100, 200
- 6 Exponential Moving Averages 10, 20, 30, 50, 100, 200
- Ichimoku Cloud (9, 26, 52, 26)
- Volume Weighted Moving Average (20)
- Hull Moving Average (9)
How do the Buy Sell Technical Indicators Work?
When any of the above technical indicators is a buy or a sell, it counts as 1 point. When it is unclear, it counts as neutral. Now, take a look at the Buy Sell Indicators below to see the average rating and the buy-sell and neutral ratings.
Oscillator Indicators
- Relative Strength Index (14)
- Stochastics %K (14, 3, 3)
- Commodity Channel Index CCI (20)
- Average Directional Index (14)
- Awesome Oscillator
- Momentum (10)
- Moving Average Convergence Divergence MACD (12, 27)
- Stochastic RSI Fast (3, 3, 14, 14)
- Williams Percent Range (14)
- Bull Bear Power
- Ultimate Oscillator (7, 14, 28)
FAQ
What does the fear and greed index mean?
A fear and greed index is a way to visualize investors' pessimism (fear) or optimism (greed). When investors feel fear, they are more likely to sell assets, pushing prices down; when they feel greed, they are likely to buy or at least hold assets, pushing prices up.
How does a fear and greed index work?
Fear and greed indexes typically bring together multiple technical and sentiment charts to paint a picture of the overall short/medium-term attitude of the investors and traders.
What does a fear and greed index measure?
Our fear and greed index measures the sentiment of stock market traders by analyzing 16 technical chart indicators, the CBOE Volatility Index, the NYSE Advance/Decline Ratio, the Kansas Federal Reserve Financial Stress index, and the AAII Sentiment Indicator.
What are the signs of fear and greed in the stock market?
Fear and greed are two emotions that play an important role in stock market trading, as investors are influenced by their feelings when making decisions. Signs of fear in the stock market include a decrease in buying activity, an increase in short selling, reduced demand for riskier investments, and increased demand for safer investments. On the other hand, signs of greed in the stock market include an increase in buying activity, a decrease in short selling, increased demand for riskier investments, and reduced demand for safer investments.
What is market sentiment?
Market sentiment measures the overall attitude of investors towards a particular security or market. It is based on the expectations and opinions of participants in the market, which can be derived from technical analysis, news events, and investor sentiment surveys. Market sentiment can be used in trading strategies to identify potential buying and selling opportunities, provide insight into underlying market conditions, or inform risk management decisions.
How to gauge market sentiment?
There are two main ways to gauge market sentiment, ask investors about their attitudes in a survey, or analyze investors' actions with technical charts. The AAII sentiment survey is a subjective feedback survey from investors. The other 9 gauges and charts in our fear and greed index are technically focused and market data.
How to measure stock market sentiment?
Stock market sentiment can be measured by surveying investors about their current attitudes, like with the AAII Sentiment Survey. Or by analyzing their buying and selling actions through charts such as the CBOE VIX Index and Federal Reserve data like the Financial Stress Index.
What is a market sentiment indicator?
A market sentiment indicator is designed to help inform us about the level of optimism or pessimism of current stock market traders and investors. For example, the VIX Volatility Index measures the levels of stock options activity in the market.
What is sentiment analysis in the stock market?
Sentiment analysis in the stock market is used to identify investors' emotions toward a particular security or market. It can be done through analysis of news articles, social media posts, and investor sentiment surveys. It allows traders and analysts to gain insights into underlying investor sentiment that may not be evident from traditional technical analysis.
How does investor sentiment affect trading decisions?
Investor sentiment plays an important role in trading decisions, as investors take into account their emotions when making decisions. Fear can lead to investors selling off shares, while greed can cause investors to take on risky investments. It is important for investors to recognize the potential impact of their emotions on trading decisions and to ensure that they are making sensible decisions when investing.
How news events impact market sentiment?
News events can have a significant impact on market sentiment. Positive news, such as earnings reports, new product launches, and regulatory changes, can lead to higher investor confidence and optimism which may drive up prices. Similarly, negative news such as earnings misses, trade disputes, or political unrest may cause investors to become more cautious or pessimistic, leading to lower prices.
What drives market sentiment?
Market sentiment is driven by the expectations and opinions of market participants, which are influenced by various factors. These include economic data, political developments, corporate earnings reports, central bank decisions, and technical analysis. Investors will assess all these factors to determine their outlook on the stock or market and act accordingly. This can lead to shifts in market sentiment that may create buying and selling opportunities.
Why is public sentiment always wrong on the market?
Public sentiment is not always wrong on the market as it can provide valuable insight into underlying investor attitudes. That said, investors should be aware that there are times when public sentiment and general market conditions diverge, and this can lead to inaccurate predictions or false signals. Furthermore, public sentiment is just one of many data points used in the analysis of fear and greed.
Extreme Greed & Fear: Boom & Busts
We have all heard the phrase “Boom and Bust,” but what is it? What causes it? More importantly, what effect can it have on our investments?
What are Booms and Busts?
“Boom and Bust” describes the sequence where an economy, commodity, or market sector goes from surging forward, making lots of profit, growing at breakneck rates, and generally improving the wealth and standard of living for all participants in the market. A boom is usually accompanied by a significant amount of greed or irrationality about the underlying fundamentals of the Boom.
“Bust” refers to the contraction of the previous boom, usually fueled by a significant economic or fundamental change in the criteria that fueled the boom in the first place. This tends to result in various side effects, ranging from a reduction in profits, earnings, and growth to increased unemployment, restriction of credit, and a great change in the psychology of the market participants from optimism and greed to pessimism and fear.
Why do Booms and Busts occur?
Take, for example, the famous Dotcom boom of 2000. Greed surged into the marketplace on the misplaced belief that new Internet-based technology would fundamentally shift the market dynamics and business models of the future.
Technology became fashionable, and “Bricks and Mortar” businesses were perceived as outdated and almost worthless. This paradigm shift meant that money poured into technology stocks at an unrepentant rate and out of “Bricks and Mortar” stocks at an equal rate.
Signs of A Bust
A telltale sign of problems was noticeable when stock analysts would suggest Price Earnings valuations on technology stocks of 200, 300, or more were reasonable even though the companies in question had never made a profit. The Price Earnings Ratio is the ratio of the Stock Price to its actual earnings.
If a P/E Ratio is at 30, it will take the company 30 years to earn back the share price. The higher the P/E ratio, the higher the expectation that the stock will perform well in the future. You can also see the Price Earnings (PE Ratio) as a valuation of the worth of the stock; if the P/E is 200, you are essentially paying 200 times the company’s earnings capacity.
The Year 2000 Dotcom Bust
In the year 2000, the S&P500’s PE Ratio reached nearly 45. This was an all-time high and indicated that the market participants’ expectations were completely unrealistic. By the time the inevitable correction was completed, the ratio had halved to just over 20.
Professional analysts and so-called “market gurus fueled much of the greed and hype.” They became greedy and euphoric: a heady mixture. When everyone slowly realized that the technology industry would not meet the huge profit expectations, the entire sector collapsed, bringing with it other industries, indices, and markets. The technology bubble had burst.
Related Fear & Greed Articles:
- Avoid Stock Market Crashes & Beat the Market Index
- Stock Market Crash Analysis, Action Plans & Predictions 2022
- How To Protect Your 401k From A Stock Market Crash
- What Caused the Stock Market Crash of 1929? A History
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Thank you very much for this beautiful artice. This is really great & helpful. I enjoy reading it. I appreciate your thoughts & ideas. Well done.
Hi
Hope you well
At the beginning , I would highly thankful for sharing the article. I have two questions if you answer I really grateful.
1- After analysis all indicator, you sum the all indicator to finalize the sentiment , Is it right ?
2-whats the correlation between DXY and the LST Fear and Greed Index ?
Hi Amir, yes you can summarize all indicators to get a feel for fear and greed. Also, don’t forget the Tradingview gauges that provide excellent technical sentiment on any given day. Additionally, I felt no need to correlate the DXY and the LST Fear and Greed Index.
Barry
Thank you very much for this beautiful article. This is really great & informative. I read it & learn about many things. I appreciate your thoughts. Well done.
The financial stress index indication is wrong, what you write is: ‘Kansas City Financial Stress Index – Extreme Fear = Price < 1 – Greed = Price < 1' Both are less than 1?
Thank you Taoli Liu for spotting this error, I have corrected it now.
Barry
hope you will be fine. If you please share methodology of your research
Hi Owais, The methodology is based on the knowledge of 100 years of technical analysis and learning started by Charles Dow. Each of the indicators are well known for Financial Technical Analysts (CFTE) like myself, and Chartered Market Technicians (CMT). I have simply brought what I believe are the important indicators together and explain how they work.
sir can u please share the methodology. I am research student and I am TRYING TO DEVELOP INDEX for my home country
Hi Zaheer, the methodology is all based on Technical & Fundamental Analysis. Each of the charts is actually well-known indices and indicators. When they are brought together they actually provide a good overview of the current market condition. For your own country, you will need to find similar indicators, for volatility, sentiment, volume and financial stress.
Hello,
And thank you for sharing your model with the public. I was wondering if you have any historical evidence that showed the model picked the buy and sell times correctly?
Sincerely,
Saeid
Hi Saeid, yes I cover many of these indicators in my book & training course.
https://www.liberatedstocktrader.com/stock-market-training/
thanks for the question
Barry
This is a top way to assess the market direction, thanks for putting it together. I really like the AAII sentiment and the technical indicators,
Thanks David, I am glad you like it
I see the 9 indicators. Where is the Fear-Greed index? I was looking for a single number that combines all the 9 indicators similar to what the CNN Fear Greed Index provides.
Hi Murali, long time no speak. I want the investor to make up their own mind as to the overall direction. It is never as simple as a single number.
I’m not sure this qualifies as an “Index” if it limited to a list of 9 indicators. The CNN also using distinct indicators which are then combined into an “index”. No one should make decisions based on a single index or calculation, of course. But an “index” does sum up all the “indicators”.
Hello Barry how do you understand this indicator. Does 26 points sell strong and buy 26 points strong sell? I ask for an answer
thanks Eddy
Hi Eddy, are you referring to the AAII indicator? If so, use it as a contrary indicator, when everyone is greedy be fearful. When everyone is fearful, be greedy.
Halo Barry
26 Punkte Strong buy heisst verkaufen ,26 punkte strong sell heißt heißt kaufen?
Gruß Eddy
Hi Eddy, Ja.
Hallo Barry
Wie finde ich die beste DJIA index kurzfristige , mittelfristige käufe und verkäufe( boden und gipfel)Im 100 jährige chart sieht es ungenau
Grüsse Eddy
Hi Eddy, I do not have a 100 year chart here. But you can use your mouse to scroll in and out of the chart to zoom in.
This is a really great set of charts, its now very clear, I will be using this in the future. Will checking it weekly be often enough?
Yes I think weekly is a good starting point. thanks Erik
Hi Barry, excellent extract from the plethora of indicators floating around. I am not able to (can not) follow the stocks to be able to trade and respond in time. I therefor pay more attention to fundamentals of the company. Do you look into that aspect as well? cheers BK
Hi BK, thanks for the comment, yes I sure do watch the fundamentals. It is always a time and effort versus return. There is no solid evidence to suggest that day trading makes more people wealthy than long-term investing. In fact, it is longer-term investing that wins that battle, so understanding the fundamentals is very important. The fear & greed index is to help people understand the state of the market overall, and help you make the big decisions
Great story here!!!
Bary,
This is terrific, and hopefully you’ve patented the” Modern Fear and Greed index”
It should be immediately expanded and published /updated Daily/Weekly.
More feedback ahead
Thank you, for this compelling sentiment illumination.
THE_UNWIND
New York
Hi Joe, well I am very glad you like it. It is self updating using the tradingview technology.
Barry