Market temperature (11/29)

The fear and greed index was developed by CNNMoney to measure two of the primary emotions that influence how much investors are willing to pay for stocks.

The fear and greed index is measured on a daily, weekly, monthly, and yearly basis. In theory, the index can be used to gauge whether the stock market is fairly priced. This is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.

Fear & Greed Index
What emotion is driving the market?

The S&P 500 is 3.58% above its 125-day average. During the last two years, the S&P 500 has typically been further above this average than it is now, indicating that investors are committing capital to the market at a slower rate than they had been previously.

Last changed Nov 24 from an Extreme Greed rating.

During the last five trading days, volume in put options has lagged volume in call options by 54.01% as investors make bullish bets in their portfolios. However, this is still among the highest levels of put buying seen during the last two years, indicating fear on the part of investors.

Last changed Nov 22 from a Neutral rating.

The CBOE Volatility Index (VIX) is at 28.62, 53.95% above its 50-day moving average and indicates that investors are concerned about the near-term values of their portfolios.

Last changed Nov 24 from a Neutral rating.