FEAR & GREED INDEX 42
Weekly Update
The Fear & Greed Index (found on cnn.com) is one of the easiest indicators to use to determine current market emotion. This simple to read gauge, highlighted in our publication When to Buy and When to Sell: Combining Easy Indicators, Charts, and Financial Astrology (available on Amazon), is measured in a range from 0-100, and currently reads 42 as of the close on Friday, December 12, 2025.
This figure remains in the upper Fear level, after rising 2 points from last week’s close of 40, as markets see-sawed around the Fed’s .25 basis rate cut. This was reflected in the S&P 500, as it dropped 43 points, from 6,870 to 6,827, after Friday’s sell off.
The 4 major indexes (S&P 500, Nasdaq, Dow Jones Industrial, and Russell 2000), continue their internal bullish sentiment regarding their 200-day moving averages, with all in a healthy high 50’s to low 60’s% range, with the DIA continuing to lead at 73%. Each index’ shorter-term 20 and 50-day MAs also remain firmly in bullish territory, though the Nasdaq dipped at weeks end. The seasonal strength of November and December (a month where fund managers alter their portfolios to buy leading stocks) has been mixed. The year-end bonus period for fund managers, the Santa Claus Rally, which would be due to begin this coming week, and Quarter-end window dressing are all now in play for the next couple of weeks.
The “Risk-On” sentiment was a bit fickle this week, as some major tech companies rose and some fell after earnings announcements. 10-year bond yields rose slightly, closing the week at 4.19% vs last week’s close of 4.14%. Keep in mind that the rate cut was “priced-in” to the market, and the Fed Chair’s comments regarding future cuts wasn’t very convincing.
The 7 internal factors used to formulate this gauge are listed on the screen (below):
Market Momentum – (S&P 500 vs its 125-day moving avg) = FEAR
Market Volatility (measured by the VIX) = NEUTRAL
Put to Call Ratio 5-day avg. (# of Puts (bearish) vs Calls (bullish) = NEUTRAL
Stock Price Strength (# of new 52-week highs vs new 52-week lows) = FEAR
Stock Price Breadth (# of shares rising vs falling on NYSE) = FEAR
Safe-Haven Demand (which measures stocks vs bonds) = NEUTRAL
Junk Bond Demand (non-govt. bond yield spread) = FEAR
This week 4 of these 7 factors changed levels, as collectively there is a slightly bearish leaning sentiment. The markets internals remain a bit weak in the momentum categories, while volatility and the Put to Call Ratio remain neutral/calm. Those two factors are important to avoid a significant downturn.
The VIX, measured by Market Volatility, rose slightly, closing the week at 15.7, vs. last week’s close of 15.4, as market volatility picked up on Friday, and volume continued to be low. The crucial “20” level has not been approached since November 24, and as noted last week, the gauge is now reaching low levels where a reversal is probable, though not likely until after the new year, unless a Black Swan event occurs.
News this week surrounded around the Fed rate cut. The end of earnings season had a mixed week with some major tech companies, but was mainly positive, with 3rd quarter growth of over 14% (when it was estimated around 7.2%), with higher-than-expected retail figures. Record high layoffs continue to weigh on the economy, however, as Jobless Claims rose high-than-expected as well. These mixed reports have resulted in neither a crash, or surge, in the equities markets thus far.
Astrologically, Sagittarius season (ruled by the planet Jupiter) continues through December 21. Please see our recent Sign Language – Sagittarius blog, dated 11-4-25 for full details. The Sagittarius/Jupiter optimism and expansion, which usually results in favorable market conditions, have started to surface, but could be tempered with Jupiter in retrograde.
The planet Mercury, now direct from its recent retrograde, resulted in lower volatility once again, as expected.
The planet Venus, which continues to transit the sign of Sagittarius (until Dec 23), exudes holiday cheer, symbolizing the increase in retail spending. However, it has been noted that only the top 10% of the income earners are responsible for 50% of the spending activity. Venus’ energies are much more favorable in Sagittarius, also signifying more peace and harmony in financial arenas, and the financial sector took the lead this week.
The planet Mars also transits to the sign of Capricorn (today - Dec 14), theoretically reducing over-aggression and rewarding hard work and persistence. As previously noted, Mars in Sagittarius symbolized aggressive gains in the short-term, however, last week’s square with the planet Saturn created a few challenges (please see our Trader Transits - Mars square Saturn blog, dated 11-29-25).
As noted, the planet Jupiter also remains retrograde in the sign of Cancer (until March 11). As previously discussed, Jupiter has very powerful expansive energies, which may weaken a bit for the time being.
Finally, the planet Uranus, which is currently in retrograde until early February, regressed from the sign of Gemini (communications and technology) to the sign of Taurus (money), about one month ago, and will not return to Gemini until April, 2026. This 6-month re-visit to the sign of money (ruled by Venus), could create more shocks to the markets, in either direction, so beware. Please review our Planet Power – Uranus Retrograde blog, dated 8-27-25 for further details.
Leading sectors, with over 50% of stocks trading over their 200-day MAs, were led by Financials (always needed for bullish moves), Healthcare, and Energy, while Utilities picked up once again with increasing “defensive” market sentiment. Real Estate continues to be the laggard, though the additional rate cut may help. In the long run, sectors of the technology industry that are likely to continue their advance into the future include AI, robotics, quantum computing, and space development (with Pluto positioned in Aquarius, and Uranus in Gemini for many years to come – when it returns in April), but will experience pullbacks along the way.
Gold (ruled by the Sun), and Silver (ruled by the Moon), rose again this week, especially silver, which has reached all-time highs. The Gold to Silver Ratio (covered in our publication), declined again, closing at 69.4, compared to last week’s close of 71.9, signifying that gold may currently be a better “value” buy. Both remain good buys after pullbacks (which they are due for) in the current economic conditions, as central banks continue to buy. Bitcoin (ruled by Uranus) reversed somewhat this week after its large down move (in lock-step with the Uranus retrograde back into Taurus), but remains skittish.
***As always, this information is not intended to be financial advice, or any specific buy or sell recommendation, but rather a guide to assist the reader in some further understanding of current economic conditions/movements in the sky, and how they can affect moods, behaviors, world events, and financial markets.
