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Glossary/Equity Markets & Volatility/Fear & Greed Index
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Equity Markets & Volatility
2 min readUpdated Apr 2, 2026

Fear & Greed Index

CNN Fear and Greedcrypto fear and greedmarket fear greed

A composite sentiment indicator — published by CNN Business for equities and Alternative.me for crypto — that scores market sentiment from 0 (Extreme Fear) to 100 (Extreme Greed) using multiple data inputs.

Current Macro RegimeSTAGFLATION→ DEEPENING

The macro regime is unambiguously STAGFLATION DEEPENING. The three-pillar structure remains intact and strengthening: (1) Energy-driven inflation shock — WTI at $104-111, +40% in 1M, flowing through PPI (+0.7% 3M, accelerating) into a CPI/PCE pipeline that has not yet absorbed the full pass-through,…

Analysis from Apr 3, 2026

What Is the Fear & Greed Index?

The Fear & Greed Index is a composite sentiment gauge that aggregates multiple market signals into a single 0–100 score. The two most commonly referenced versions are the CNN Business Fear & Greed Index (equity markets) and Alternative.me's Crypto Fear & Greed Index (Bitcoin/crypto).

CNN Business Fear & Greed Index Components

  1. Market Momentum: S&P 500 vs 125-day moving average
  2. Stock Price Strength: 52-week highs vs lows on the NYSE
  3. Stock Price Breadth: Advancing vs declining volume
  4. Put & Call Options: PCR ratio
  5. Junk Bond Demand: HY spread relative to IG spread
  6. Market Volatility: VIX vs 50-day moving average
  7. Safe Haven Demand: Stock vs bond returns

Crypto Fear & Greed Index (Alternative.me)

Uses different inputs suited to the crypto market: volatility, market momentum, social media, surveys, BTC dominance, and Google Trends for crypto-related terms.

Score Ranges

  • 0–25: Extreme Fear — historically a buying opportunity
  • 26–45: Fear
  • 46–55: Neutral
  • 56–75: Greed
  • 76–100: Extreme Greed — historically a caution signal

Contrarian Use

Like the put/call ratio, the Fear & Greed Index is most useful as a contrarian indicator at the extremes. Markets that reach Extreme Fear (≤15) have historically produced strong subsequent returns; Extreme Greed (≥85) has historically preceded corrections or underperformance. The signal is not precise — it can persist for weeks — but is useful as a risk management tool.

Frequently Asked Questions

▶Is the Fear & Greed Index a reliable buy or sell signal?
The index is most useful as a contrarian risk management tool at its extremes rather than a precise buy or sell trigger — extreme fear readings (below 20) have historically preceded strong medium-term recoveries, while extreme greed (above 85) has often preceded corrections. However, extreme readings can persist for weeks or months, so traders should treat the index as a prompt to reassess position sizing rather than a standalone entry or exit signal. Combining it with other sentiment indicators like the put/call ratio or VIX term structure significantly improves its practical reliability.
▶What is the difference between the CNN Fear & Greed Index and the Crypto Fear & Greed Index?
The CNN version is designed for U.S. equity markets and draws on seven sub-indicators spanning price momentum, market breadth, options sentiment, credit spreads, and volatility. The Alternative.me Crypto Fear & Greed Index uses inputs tailored to digital assets, including Bitcoin price volatility, trading volume momentum, social media sentiment, Bitcoin dominance, and Google Trends data. The crypto version tends to register sharper swings because crypto markets operate 24/7 without institutional circuit-breakers, meaning extreme readings are more frequent and less inherently rare than in the equity version.
▶How often is the Fear & Greed Index updated?
Both the CNN Business Fear & Greed Index and the Alternative.me Crypto Fear & Greed Index update once per day, making them most applicable for swing traders and position traders rather than intraday strategies. The CNN index incorporates end-of-day market data, while the crypto version can reflect intraday price and social media data depending on when the daily snapshot is taken. For higher-frequency sentiment proxies, traders often supplement the index with real-time tools like the VIX or live options flow data.
Related Terms
BTC Funding RatePut/Call RatioVIX

Fear & Greed Index is one of the signals monitored daily in the AI-driven macro analysis on Convex Trading. The platform synthesises data across monetary policy, credit, sentiment, and on-chain metrics to generate actionable trade recommendations. Create a free account to build your own signal layer and see how Fear & Greed Index is influencing current positions.