BREAKING: Stock Market Fear and Greed index entered extreme greed territory

What does it mean for the US stock market?

The popular CNN Fear & Greed index rose to 77 points, the highest level since March, and entered extreme greed territory.

This is not exactly an indicator showing greed or fear among investors but a useful metric based on 7 important stock market measures that show how much they diverge from their averages.

In other words, it highlights extremes of the stock market and can signal short-term pullbacks or bounces.

Values above 75 usually signal that the market has gone too far and a short-term decline may occur. By no means, however, the indicator signals major stock market turns.

On Monday, out of 7 indicators of the index 6 have entered either greed or extreme greed. The only exception is the Volatility index VIX which is at neutral levels. More details under the link:

https://edition.cnn.com/markets/fear-and-greed

https://en.macromicro.me/charts/50108/cnn-fear-and-greed

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