U.S. Federal Reserve

The above index uses the following factors to measure market sentiment. These are – Volatility, Market Momentum/ Volume, social media, Surveys, Dominance, and Google search trends.

There are two ways to read the index:

• Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
• When Investors are getting too greedy, that means the market is due for a correction.