The CNN Fear and Greed Indicator uses seven technical indicators to provide a reading between 0 – 100. Since August 2022 readings at the close have been moving between a low of 14 and high of 85. When the reading briefly drops between 20 and 35, markets would be expected to trend higher. When readings drop below 20, there is a high probability that markets will move higher. There have been four readings below 20 between 2022 and 2025. They are noted in the following chart. If there is a sharp sell off over the next few weeks with a Fear and Greed reading below 20 at the close, then markets would be expected to move higher.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
