E Fear & Greed Index: Market Sentiment Is Excessive These Days - Take A Look

Investors are driven by two emotions: fear and greed. Too much fear can sink stocks well below where they should be and, when investors get greedy, they can bid up stock prices way too far. CNN has created a Fear & Greed Index that correlates well with stock market corrections and crashes so what emotion is driving the market now?

Well, according to the latest analyses, as the graphic shows below, there is excessive greed in the markets.

The Fear & Greed Index looks at how far each of 7 indicators have moved from their respective average relative to how far they normally move - the higher the reading, the greedier investors are with 50 being neutral - and then all the indicators are put together - equally weighted - into a final index reading.

The 7 indicators CNNMoney's Fear & Greed Index looks at are:

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