While markets move lower at an increasing rate, the CNN Fear & Greed Index will adjust accordingly. Two key readings have been under observation at market lows over the last few years that fall into the following parameters.
1. CNN Fear & Greed Index less than or equal to 20.
2. CNN Put and Call Options Index greater than or equal to 0.90.
Generally, when readings have met these parameters at the same time, markets are in, or are moving into, a range of another low as shown in the following chart.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
