# Fear and Greed Index: How CNN’s Stock Market Sentiment Gauge Works

Web page: https://uptickflow.com/en/learn/fear-and-greed-index  
Updated: 2026-10-29

The CNN Fear and Greed Index explained: its seven indicators, the 0–100 scale and zones, how to use extremes as context, and why the crypto index is different.

The Fear and Greed Index is CNN Business’s gauge of US stock market sentiment: it combines seven market indicators into one score from 0 to 100, where low readings signal fear, high readings signal greed and the middle is neutral. Each indicator has equal weight. Contrarian traders watch the extremes, but the index describes the mood of the market; it does not time it.

Below: what the index measures, the seven indicators in plain words, how to read the zones, how to use extreme readings as context with a hypothetical example, and why the crypto Fear & Greed Index is a different index from a different publisher. The method is described as CNN presents it in October 2026; CNN notes that it adjusts the calculation from time to time, so check its page for changes.

## What is the Fear and Greed Index?

CNN Business publishes the Fear and Greed Index to answer one question: what emotion is driving the US stock market now? It tracks seven indicators of market behaviour, from momentum and breadth to options and bond demand. For each one, it measures how far the indicator has moved from its own average compared with how far it usually moves, and turns that into a score from 0 to 100. The seven scores are then averaged with equal weight into the headline number.

A score of 0 is maximum fear and 100 maximum greed. CNN’s dial splits the scale into five zones, drawn at the top of this page: extreme fear up to about 25, fear to 45, neutral from 45 to 55, greed to about 75 and extreme greed above. The page also shows the readings at the previous close and one week, one month and one year earlier, with a timeline chart, the simplest way to see where today’s number sits in its own history.

- **Fear & Greed Index**: CNN Business’s 0 to 100 gauge of US stock market sentiment: the equal-weighted average of seven market indicators, where low readings mean fear and high readings greed.
- **Contrarian indicator**: A reading used against the crowd: extreme fear is treated as a possible sign that selling is overdone, extreme greed as a possible sign of complacency.

## What are the seven indicators of the Fear and Greed Index?

Each indicator reads one corner of the market. In plain words, as CNN describes them:

- Market momentum: the S&P 500 compared with its 125-day moving average. An index well above its average reads as greed; slipping toward or below it, as fear.
- Stock price strength: the number of NYSE stocks at 52-week highs against those at 52-week lows. More new highs is greed; more new lows is fear.
- Stock price breadth: a McClellan summation index of trading volume in rising versus falling NYSE stocks. Volume flowing into falling stocks reads as fear; see [market breadth](https://uptickflow.com/en/learn/market-breadth).
- Put and call options: the 5-day average [put/call ratio](https://uptickflow.com/en/learn/put-call-ratio). Puts gaining on calls, especially a ratio above 1, reads as fear.
- Market volatility: the VIX against its 50-day moving average. A VIX rising above its average reads as fear; the [VIX lesson](https://uptickflow.com/en/learn/vix-volatility-index) explains what it measures.
- Safe haven demand: the difference between stock and Treasury bond returns over the last 20 trading days. Bonds beating stocks means investors are seeking safety: fear.
- Junk bond demand: the spread between yields on junk bonds and investment-grade bonds. A narrowing spread means investors accept more risk for less extra yield, which reads as greed; a widening one, as fear.

- **Safe haven demand**: Money moving from stocks into assets seen as safer, such as US Treasury bonds; in the index, bonds beating stocks over 20 trading days reads as fear.
- **Junk bond spread**: The extra yield investors demand on low-rated (junk) bonds over investment-grade bonds. A widening spread signals rising fear; a narrowing one, appetite for risk.

## How do you read the zones, from extreme fear to extreme greed?

The zones describe how stretched the mood is, not where prices are going. A reading near 50 means the seven indicators are, on balance, close to their usual ranges. A reading of 15 means most of them sit far on the fearful side at once: the S&P 500 below its average, many new lows, heavy put buying, a VIX above its average, money moving into bonds. That combination is common after sharp sell-offs.

Two cautions. First, each indicator is scored against its recent history, so a fear reading during a strong [bull market](https://uptickflow.com/en/learn/bull-vs-bear-market) and one deep into a bear market do not mean the same thing. Second, the index can stay at an extreme for weeks: in a real decline, fear readings describe the decline; they do not mark its end.

## How to use the Fear and Greed Index: context, not a timing signal

The classic use is contrarian: when almost everyone is fearful, much of the selling may already be done; when almost everyone is greedy, risks are easy to ignore. Extreme fear has often appeared near short-term lows, which is why contrarians watch it. The trouble is the word often. The drawing below shows two hypothetical stretches of extreme fear on the same index:

- In the first, the reading falls to 12 with the index at 90, and the index climbs back to 98 over the next 12 sessions: a good moment to be a buyer, in hindsight.
- In the second, the reading reaches 18 with the index at 92, and the index keeps sliding to 86, another 6.5%, while the reading stays in extreme fear for more than two weeks and even dips to 11.

## Worked example: an extreme fear reading and a stock on your watchlist (hypothetical)

Nothing on the day separated those two stretches, which is why the reading works better as a filter on behaviour than as a trigger. Hypothetical: after a 9% drop in the S&P 500 from its high, the index reads 14, extreme fear, and the VIX is at 30. XYZ, a stock on your watchlist, has fallen from $96 to $78 and broke below support at $82 last week. You are tempted to buy the fear. A plan that uses the reading without obeying it:

1. The reading is not an entry. No order goes in because the index says fear.
2. The level decides. You buy only if XYZ closes back above $82, the level it broke, and holds above it on a pullback; a stock that cannot reclaim a broken level may be in a [dead cat bounce](https://uptickflow.com/en/learn/dead-cat-bounce).
3. The trigger: XYZ closes at $83.10, pulls back to $82.20 without losing $82, then closes back up at $83.40. You buy there, with a stop at $81.70, under the level and the pullback low. Risk: $1.70 a share.
4. Size for the mood. Your normal risk is 0.5% of a $20,000 account, $100. With volatility high you halve it to $50, and the [position size calculator](https://uptickflow.com/en/learn/position-size-calculator) gives $50 ÷ $1.70 = 29 shares, about $2,419 of stock.
5. If XYZ never reclaims $82, there is no trade, however low the reading goes.

## Fear and Greed Index for stocks vs crypto: two different indexes

The Crypto Fear & Greed Index is a separate index, published daily by Alternative.me, and its publisher states that it currently covers Bitcoin only. Its inputs are different too: volatility and market momentum and volume carry 25% each, social media 15%, surveys 15% (marked as paused), Bitcoin dominance 10% and search trends 10%. A crypto reading of 80 says nothing about the mood of the S&P 500, and the two can disagree for weeks.

Other gauges that borrow the name, for gold or other markets, use their own methods. Check who publishes a number before you use it, and read any of them next to price, the VIX and breadth rather than alone. The record of [stock market crashes](https://uptickflow.com/en/learn/stock-market-crashes) is a reminder that some fear phases ended in days and others lasted months.

## Key takeaways

- The CNN Fear and Greed Index averages seven equally weighted market indicators into one score from 0 to 100: low is fear, high is greed, around 50 is neutral.
- The indicators cover momentum, new highs and lows, breadth, the put/call ratio, the VIX, stocks versus bonds and junk bond spreads.
- Extreme fear has often appeared near short-term lows, but readings can stay extreme while prices keep falling: use the index as context, not as a timing signal.
- The crypto Fear & Greed Index is a different index, published by Alternative.me for Bitcoin, with different inputs.

## FAQ

**What does the Fear and Greed Index measure?**

The mood of the US stock market, through seven indicators: momentum, new highs versus new lows, breadth, the put/call ratio, the VIX, stocks versus bonds and junk bond demand. CNN averages them into one score from 0 (extreme fear) to 100 (extreme greed).

**Is the Fear and Greed Index a good indicator to buy stocks?**

Not on its own. Extreme fear has often come near short-term lows, but it can last for weeks in a real decline. Use it to adjust your size and patience, and let price levels on your own chart decide entries.

**Where can I find Fear and Greed Index historical data?**

CNN’s page shows the reading at the previous close and one week, one month and one year ago, plus a timeline chart. For a longer series, check what CNN currently offers and be careful with third-party copies, which may be incomplete or built differently.

**Is the crypto Fear and Greed Index the same as CNN’s?**

No. The crypto index is published by Alternative.me, covers Bitcoin and uses inputs such as volatility, momentum and volume, social media and Bitcoin dominance. CNN’s index covers US stocks with seven market indicators.

**What is the difference between the Fear and Greed Index and the VIX?**

The VIX is one of the seven inputs: Cboe describes it as a measure of expected near-term volatility conveyed by S&P 500 option prices. The Fear and Greed Index combines it with six other indicators into a single sentiment score.

---

Educational content, not financial advice. Trading involves risk of loss. https://uptickflow.com/llms.txt