Market temperature (12/14)

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 McClellan Volume Summation Index measures advancing and declining volume on the NYSE. During the last month, approximately 5.82% more of each day's volume has traded in declining issues than in advancing issues, pushing this indicator towards the lower end of its range for the last two years.

Last changed Dec 1 from a Fear rating.

Bonds have outperformed stocks by 1.31 percentage points during the last 20 trading days. This is close to the weakest performance for stocks relative to bonds in the past two years and indicates investors are fleeing risky stocks for the safety of bonds.

Last changed Dec 10 from a Fear rating.

During the last five trading days, volume in put options has lagged volume in call options by 42.99% 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 extreme fear on the part of investors.

Last changed Nov 26 from a Fear rating.