FEAR & GREED INDEX 52
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 52 as of the close on Friday, January 23, 2026.
This figure moved back into the Neutral level, after dropping 10 points from last week’s close of 62. The S&P 500, closed the week down as well, slipping 25 points, from 6,940 to 6,915, though it rose steadily after Tuesday’s large downturn.
The 4 major indexes’ 200-day MA (Moving Average) internal bullish sentiment, remained steady, as they continue to sit in the high 60’s% range, with the DIA leading at 77%, slightly higher than last week. Each index’ shorter-term 20 and 50-day MAs declined slightly (especially the 20) but also remain healthy for the time being. The January Effect, when “new” money traditionally is added to pensions, 401k’s, and invested in small caps (IWM), remains in play for another week, with the IWM continuing to show solid results.
The “Risk-On” sentiment increased on Wednesday and Thursday, after the weekend global uncertainty subsided after Tuesday, but waned a bit on Friday. 10-year bond yields remained steady, closing the week unchanged at 4.23%, continuing to suggest the bond market is not quite convinced that the economy is in good shape. As noted for several weeks, yields on long-term bonds are likely to stay elevated until that sentiment changes.
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) = EXTREME FEAR
Stock Price Strength (# of new 52-week highs vs new 52-week lows) = EXTREME GREED
Stock Price Breadth (# of shares rising vs falling on NYSE) = GREED
Safe-Haven Demand (which measures stocks vs bonds) = EXTREME FEAR
Junk Bond Demand (non-govt. bond yield spread) = EXTREME GREED
This week only 2 of these 7 factors changed levels, as the momentum categories have become somewhat divergent, reflected by the rise in The Stock Price Breadth vs the decline in Market Momentum.
The VIX, measured by Market Volatility, spiked early in the week for a brief period, before calming again Friday, closing slightly up at 16.1, compared to last week’s close at 15.8. The crucial “20” level was pierced briefly on Tuesday (following the holiday weekend global uncertainty), for the first time since November 24, as the expected increase noted over the last few weeks temporarily kicked in. Look for a continued rise in volatility in the near future.
News this week focused squarely on the new tariff threat regarding Scandinavian countries and the issue of Greenland. Once again, the initial forceful comments were reflected in the opening on Tuesday morning, only to subside based on more reasonable terms suggested a day or two later. Other economic reports included a decline in the Leading Economic Indicator (business activity) gauge, which are delayed from October and November, suppressing the potential market reaction, and a slight improvement in GPD and Consumer Sentiment. Until the information catches up to the present (delayed from the government shutdown), the market is not putting much significance into the reports.
As we also discussed the past few weeks, we have now officially entered the 2nd year of the Presidential Cycle, known as the Mid-Term Year, which has historically posted the worst returns of the 4-year cycle, at least leading up to the elections. Please see our Did You Know – About the Mid-Term Election Year blog, dated 12-27-25 for more details.
Astrologically, Aquarius season (ruled by the planet Saturn) began last Sunday, January 19, which is the 11th sign of the zodiac with financial implications. Please see our recent Sign Language – Aquarius blog, dated 1-6-26 for full details. Though the Saturn challenging energies of Capricorn continue (as Saturn also rules that sign), the collective symbolism of Aquarius has continued to be reflected in the broadening market (more stocks rising vs falling).
The planet Mercury, is also now transiting the sign of Aquarius from January 20 - February 6. Earnings season announcements have begun again, and will certainly affect sectors and specific stocks. Mercury’s conjunction of Mars over last weekend, right on cue, resulted in aggressive global verbiage/announcements that affected the markets from the outset. Also, the next Mercury Retrograde occurs in a little over one month, from February 26 through March 20 (in Pisces season), which will likely coincide with the increased volatility we consistently note.
The planet Venus is also transiting the sign of Aquarius on (Jan 17 - Feb 10), symbolizing some financial benefit across the masses, but also conjoined Pluto on Monday, Jan 19, signifying transformational financial conditions. Its upcoming square aspect with Uranus, on February 27, also signifies sudden impulsive financial events.
The planet Mars also entered the sign of Aquarius on Friday, Jan 23 (remaining until March 2), leaving behind the Capricorn challenging energies that had slowed Mars down (please see our Trader Transits - Mars square Saturn blog, dated 11-29-25).
Please also note that all 3 of these planets have formed, or will form (in the case of Mars) conjunctions with the planet Pluto throughout the week (between the 19th and 27th of January), which is discussed in the same Sign Language – Aquarius blog, signifying more financial and political chaos across the globe.
The planet Jupiter remains in retrograde in the sign of Cancer (until March 11), and 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 February 4, remains in the sign of Taurus (money), and will not return to Gemini until April, 2026. This 6-month re-visit to the sign of money (ruled by Venus), could also 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, has shifted with the current “sector rotation” into areas including Industrials, Basic Materials, and Energy, with the increasing expectation of military conflict. Real Estate, which had briefly surged, has cooled again, along with Communicative Services (which basically led all of 2025), further indicative of the current shift. 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), though they will experience pullbacks along the way.
Gold (ruled by the Sun), and Silver (ruled by the Moon), surged again this week, amid the uncertainty and increasing global usage. The Gold to Silver Ratio (covered in our publication) has now dropped in half since reaching 100 last May, closing at 48.3, compared to last week’s close of 50.9. Silver continues to outpace gold, suggesting gold may be a better “value” buy at the current time. Both remain good buys after pullbacks in the current economic conditions, however, as central banks continue to buy, and Safe-Haven investments remain popular. After a strong holiday weekend, Bitcoin (ruled by Uranus) continues to struggle as the Uranus retrograde is nearing its end.
***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.
