Fear & greed
Kereon's 0–100 reading of market mood, from extreme fear to extreme greed.
Formula
Fear & greed = mean of the available votes, each 0–100
Inputs
- Market breadth. % of desk stocks advancing.
- 52-week highs vs lows. 100 × new highs ÷ (new highs + new lows).
- Up vs down volume. 100 × up volume ÷ (up + down volume).
- S&P vs its 20-day average. SPY's distance from its 20-day average: −3% scores 0, +3% scores 100.
- Stocks vs Treasuries. SPY % change − TLT % change: −1.5 points → 0, +1.5 → 100.
- Junk-bond demand. HYG % change − TLT % change: −0.8 points → 0, +0.8 → 100.
- Volatility (VIX). A VIX of 32 scores 0 and 12 scores 100.
How to read it
Not the CNN index of the same name, which uses exchange-wide inputs Kereon does not have.
How to use it
Gauges crowd mood; extremes are often read contrarily — extreme fear near lows, extreme greed near highs.
Limitations
Mostly one-day inputs, so it swings intraday; it reads the desk's own list rather than the whole exchange.
In Kereon
Market. The average of up to seven 0–100 votes: share of stocks advancing, new highs versus lows, up versus down volume, the S&P 500 fund against its 20-day average, stocks versus Treasuries today, junk bonds versus Treasuries, and the VIX (inverted). A vote with no data drops out rather than counting as 50. Below 25 extreme fear, 45 fear, above 55 greed, above 75 extreme greed.
Also called: fear & greed, f&g, fear and greed.