In 2022 the Fear and Greed Index dropped below 20 between September 28, 2022 and October 11, 2022. In 2023 it dropped below 20 on March 15, 2023. During each time period, extremely large block trades were observed crossing the tape. As of 5:30 AM ET today the Fear & Greed Index was 34 and it is expected to decline while the S&P500 moves down to the lower trend line of its accumulation channel shown below. This will provide Market Makers with the opportunity to accumulate additional inventory using extremely large block trades, and then move prices back up to fill the August 1, 2023 – August 2, 2023 gap.
Stock chart courtesy of StockCharts.com.
