The CNN Fear & Greed Index often referred to as the Equity or Stock Market Fear and Greed Index measures investor sentiment in the US stock market on a scale of 0 (Extreme Fear) to 100 (Extreme Greed).
It aggregates seven indicators, including market momentum, stock price strength/breadth, volatility (VIX), put/call options, safe haven demand, and junk bond demand.
As of the latest update, the index stands at 63, firmly in the Greed zone typically 55+ indicates Greed, with 75+ being Extreme Greed. This reflects improving or bullish investor sentiment amid recent market performance. This level represents the highest reading since at least September 2025, based on available data and reports:In late 2025, the index plunged into Extreme Fear territory during periods of market pullbacks and volatility.
By December 2025, it began recovering into the Greed zone for the first time since September in some reports. Recent readings climbed steadily into January 2026, with values in the low-to-mid 60s marking a notable high point compared to the fear-dominated sentiment in the fall of 2025.
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Historical lows in late 2025 hit as low as single digits during corrections. This greed reading suggests investors are optimistic, potentially driven by strong equity performance e.g., S&P 500 near or at elevated levels, but contrarian investors sometimes view high greed as a caution signal for possible overextension or future pullbacks.
The CNN Fear & Greed Index reaching 63 in the Greed zone. its highest level since at least September 2025 — signals a notable shift in investor sentiment from the fear-dominated periods of late 2025 when readings dipped into single digits or low teens during market pullbacks, trade concerns, and volatility.
This reading reflects improving bullish confidence, driven by strong underlying indicators: Positive market momentum (S&P 500 well above its 125-day moving average). Strong stock price strength and breadth more new 52-week highs, favorable volume in advancing stocks.
VIX subdued compared to its moving average. Reduced safe haven demand. Increased junk bond appetite— tighter credit spreads, showing willingness to take risk. Favorable put/call options dynamics not signaling heavy hedging.
Key Implications for the Stock Market
The move into Greed territory often aligns with ongoing rallies, as seen in recent months. The S&P 500 has been pushing toward or hovering near all-time highs recently around 6,944–6,960 levels, supported by positive economic data, corporate earnings resilience, and optimism for 2026 growth.
This sentiment recovery follows the sharp fear plunge in fall 2025 around November lows around 9–11 during corrections. Historically, elevated greed readings especially 60+ can act as a warning for over-optimism. Excessive greed sometimes precedes short-term pullbacks, profit-taking, or corrections, as investors become complacent and valuations stretch.
It’s not an immediate sell signal — markets can stay “greedy” for extended periods during bull runs — but it suggests reduced margin of safety and higher vulnerability to negative surprises. With Wall Street forecasts for 2026 generally positive e.g., S&P targets ranging from modest gains to 8,000+ by year-end, sustained greed could fuel additional advances if earnings and economic conditions remain supportive.
Readings in the 60s not yet Extreme Greed at 75+ indicate building enthusiasm but not euphoria. A reversal could occur if momentum slows or external pressures emerge. Contrarians often view high greed as a time to trim positions or prepare for volatility.
This marks a clear rebound from late-2025 fear extremes tied to factors like tariff talks and economic uncertainty, suggesting the market has shaken off much of that anxiety. The upward trend from ~53 a month ago to 63 now reinforces a “risk-on” environment, but watch for any quick drops back toward Neutral/Fear as potential buying opportunities.
The index implies optimistic but potentially frothy sentiment right now — bullish for near-term stability or gains, yet a reminder to stay vigilant against complacency.