Home > Stock Market Strategy > FEAR/GREED SENTIMENT INDEX – MARCH 26, 2017

FEAR/GREED SENTIMENT INDEX – MARCH 26, 2017

March 26th, 2017

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has moved into the “Fear” range this past week. When it reaches the “Extreme Fear” area, it will become one of the pre-conditions for an intermediate-term stock market bottom.

So any further weakness in the general market will probably put this index in the “Extreme Fear” range which means that it’s a time to start getting your feet wet with a diversified long position. My favorite plays would be the SPY and QQQ Exchange-Trade Funds.

But since the last market top was not very far from the current position, I’d look at this next bottom as being only a starting point to challenge the old highs.

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