Market Sentiment Indicators Overview
SIO Fear & Greed Index
SIO Fear & Greed Index
Composite Index Explanation
The SIO Fear & Greed Indicator is a sentiment indicator calculated from a synthesis of multiple U.S. stock market data points, represented by a score from 0 to 100. A score closer to 0 signifies extreme fear in the market, potentially indicating a higher probability of success for buying at this time. Conversely, a score closer to 100 suggests extreme greed in the market, advising against chasing further highs. Compared to the CNN Fear & Greed Index, it incorporates a more comprehensive set of indicators, including the AAII Investor Sentiment Survey results—often considered a proxy for U.S. retail investor sentiment—to more accurately reflect the long-term relationship between market sentiment and prices.
Historical Data Review
Historically, whenever the Sentiment Inside Out Fear & Greed Index (SIO Fear & Greed Index) reached around 10 points, it marked a bear market bottom (including the 2009 financial crisis, the 2020 COVID-19 pandemic, and the 2022 Russo-Ukrainian War). Seizing these moments presented excellent buying opportunities.