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, June 5, 2026.
The gauge fell all the way from the mid-Greed category to the upper-Fear territory in the last 3 days of the week, especially Friday, shedding 18 points from last week’s close of 60. This was reflected in the S&P 500, which abruptly snapped its 9 consecutive week rally, losing 197 points, from 7,580 to 7,383.
The 4 major indexes’ 200-day MAs (Moving Averages) internal sentiment remains in the bullish zone, but continues to decline, as the number of stocks making new highs on all indexes has declined to 52-60%, led by the DJIA, after last week’s range of 57-63%, led by the Nasdaq. The shorter-term 20 and 50-day MAs also fell much closer to the 50% mark.
The “Risk-On” sentiment wilted by week’s end, led by a plunge in the technology sector. 10-yr bond yields responded to a “surprisingly” strong employment report by rising to 4.54%, up from last week’s close of 4.44%, which was largely negative. Although Stagflation, when the economy is slowing and inflation is rising, eased a bit, the new concern is that interest rates may be raised.
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) = GREED
Market Volatility (measured by the VIX) = NEUTRAL
Put to Call Ratio 5-day avg. (# of Puts (bearish) vs Calls (bullish) = EXTREME GREED
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) = FEAR
Junk Bond Demand (non-govt. bond yield spread) = EXTREME FEAR
This week, 2 of these 7 factors changed levels, as Market Momentum slowed, while the strength and breadth categories fell deeper into the Fear level, reflecting the drop in market internals we stressed over the last few weeks. The all-important Put to Call Ratio (used more by short-term traders) continues to be heightened at Extreme Greed (but probably not for long) reflecting the over-enthusiasm of the markets, resulting in the pullback on Friday, which had been indicated.
The VIX, measured by Market Volatility, spiked on Friday, closing up 5.1 points (33%!) at 20.4, vs last weeks close of 15.3, as the expected early June volatility arrived. As we often note, any break-through of the crucial “20” mark suggests a pullback, which came in earnest on Friday.
Energy prices were actually tame this week with improved investor sentiment regarding an end, or at least better conditions, concerning the global military conflict. Equities and metals finally succumbed to the noted divergent and over-extended conditions to the upside, with the significant drops in market internals, as well as Relative Strength and the Advance/Decline Line. A large focus in the markets in recent weeks has become the SpaceX IPO, scheduled for this Friday, June 12, which will potentially become the largest public offering of all-time. Be careful not get caught in a bull-trap, if planning to invest. The vast majority of hyped IPO’s surge on the first day of trading, only to pull back significantly due to selling by early investors.
As mentioned, Economic data was stronger than expected this week with manufacturing, building, and employment numbers, which broke the momentum that had been fragilely holding up the markets with the mega-caps. As often occurs, the sudden drop came at cycle and all-time high marks.
Astrologically, we continue through Gemini season an air, 2-sided sign (May 21 – June 20), which is seasonally more volatile than Taurus. The expected drop in the VIX in Taurus season did develop, and is nearing a point where reversals often occur. Though Gemini season rarely suffers any major downturns, the gains are generally limited.
Mercury, the planet of trading, recently transited the sign of Gemini (one of its two “home” signs with Virgo), putting a focus on communications and transportation, which both symbolize. It also briefly formed a conjunction with Uranus on May 17, helping boost airline and space-related stocks. Proceed with caution for the time being, however, as the markets will likely “even” out with Gemini’s push and pull energies. Mercury has now moved into the sign of Cancer, a water sign, (for over 2 months until Aug 9), signifying a shift in mood and sentiment, signifying increased market volatility. This transit is longer than usual for Mercury, highlighted by its next retrograde period at the end of the month.
The planet Venus, transiting the sign of Cancer (May 18 – June 13), has provided the expected shift to more “love of the home” stocks and sectors including cyber-security, and real estate/home improvement, which have increased. It also coincides with a dip in cryptocurrencies since it exited Gemini, which was favorable for that sector. This planet’s ingress to the sign of Leo at the end of the week highlights fashion and self-pleasing products, signified by the Consumer Discretionary sector, which has been beaten down over the past several months.
The planet Mars continues its transit through the sign of Taurus (May 17 – June 28), cooling from its ultra-aggressive energies (in Aries) to more stable conditions. Mars in this sign tends to symbolize a lean toward longer-term plans (investments) rather than quick aggressive action. Mars is not favorable in the earth sign of Taurus, which has tempered the gains in Real Estate.
As noted, the much-anticipated Uranus (sudden, unexpected events/high technology) entry into the sign of Gemini (communications, transportation) is now complete, where it will remain until 2033. Gemini, like Uranus, represents high intelligence, communications, and technology, signifying major advances in those industries. Uranus’ energies have been on full display with quick, unexpected reversals again this week, and do not be “surprised” if this type of market action continues with Mars approaching Uranus. The two will form a conjunction on the 4th of July, suggesting “fireworks” just prior to, and after, that weekend date. Please review our Trader Transits – Uranus in Gemini blog, dated 3-30-26, for more details.
Leading sectors include Energy, which is heavily dependent on the ever-changing status of the Middle-East conflict, and Real Estate have taken the lead, though a rise in interest rates could contribute in limiting gains in the latter. Utilities, a safe-haven during turbulent times, rose again, as did Healthcare and Consumer Staples, for the same reasons. Meanwhile, Infotech and Consumer Discretionary fell hard.
As we continued to stress, sectors of the technology industry that are likely to continue their advance into the future include AI, robotics, quantum computing, and space development (recent surge), with both Pluto positioned in Aquarius and Uranus in Gemini, for many years to come, though they will experience pullbacks along the way.
Gold (ruled by the Sun), and Silver (ruled by the Moon), plunged on Friday after a quiet week, due to the same interest rate concerns. The Gold to Silver Ratio closed at 63.8, up 3.6 points from last week’s close of 60.2, remaining rather neutral. Both metals remain good buys after pullbacks, so long as economic conditions remain the same, with central banks continuing to buy, and Safe-Haven investments expected to remain popular. Bitcoin (ruled by Uranus) decreased significantly all week, with its Fear & Greed Index falling to 16, into Extreme Fear territory, closing down 18 points from last week’s close of 34. Look for the second half of June to be better than the first.
***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.
