What is CNN Money's fear & greed index?

eResearch Corporation is pleased to provide a summary of CNN Money’s Fear & Greed index for the week ending August 21, 2020. The current Fear & Greed index is 70 (“Greed”) similar to 72 (“Greed”) from last week. The index has remained “Greed” for the seven weeks month, after being in “Neutral” during the first week of July.

How do fear and greed affect the stock market?

Fear is what drives investors to flee the market in panic when it turns bearish, and greed is often at the root of "irrational exuberance" that can lead to stock market bubbles. When those sentiments change, from fear to greed or vice versa, it can predict a change in the stock market's direction. The premise of the Fear and Greed Index is that:

How do you measure greed and fear in the market?

The CBOE's VIX index, for instance, measures the implicit level of fear or greed in the market by looking at changes in volatility in the S&P 500. The CNNMoney Fear & Greed Index is another good tool that measures daily, weekly, monthly, and yearly changes in fear and greed.

Is the CNN Business fear & greed Index in bearish territory?

The CNN Business Fear & Greed Index, which looks at seven different measures of market sentiment, is showing signs of Extreme Fear. Four of the seven indicators are in bearish territory. Demand for safe haven bonds is picking up.