FEAR & GREED INDEX 53
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 53 as of the close on Friday, September 5, 2025.
This figure now sits in the upper Neutral level, after falling 11 points from last week’s close of 64. The S&P 500 however, eked out a gain of about 21 points, from 6,460 to 6,481, despite beginning and ending the week with negative sentiment. The 4 major indexes, which include the S&P 500, Nasdaq, Dow Jones Industrial, and Russell 2000 (small cap index), remain in bullish territory (when over 50% of their components continue to trade over their 200-day moving averages), as the market overall was relatively flat. Each index continues over the 60% mark, with the Dow leading the way at 73% (a slight decline from last week), signifying a healthier market not only dominated by the Mag7. Currently, the 20-day moving average for all 4 indices combined stands at 61%. It is also notable that the Russell 2000 (IWM) has risen of late, while the others have slightly declined.
The “Risk-On” sentiment waivered this week, with mixed economic news and the highly anticipated Fed meeting only 2 weeks away. The 10-year bond yields slipped to 4.09% this week, after closing last week at 4.23%, a positive indicator, as the interest rate cut in September again appears definite, though that is likely “baked-in” to price levels at this point.
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) = NEUTRAL
Market Volatility (measured by the VIX) = NEUTRAL
Put to Call Ratio 5-day avg. (# of Puts (bearish) vs Calls (bullish) = GREED
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) = FEAR
Junk Bond Demand (non-govt. bond yield spread) = FEAR
This week, 3 of these 7 factors changed levels as the Greed sentiment subsided a bit. Safe- Haven and Junk Bond Demand both changed from Greed to Fear as a result, with Gold, Silver and Bonds advancing. The Put to Call Ratio slipped to Greed, from Extreme Greed, as well, with the Risk-On sentiment dropping.
The VIX, measured by Market Volatility, remains in Neutral territory, basically unchanged, closing at 15.2, after ending the last week at 15.3. The “20” level on the VIX is often considered a crucial level, as anything under 20 suggests calm markets, and anything over reflects more uncertainty and/or nervousness among investors and traders. Volume has also been lower than average (typical for August) but should increase very soon, which can also increase price volatility. Consolidation, which has basically been the recent price action, rather than a correction, would be also considered positive in the long run.
This week’s news was mainly focused on a slew of Fed data, including jobs, manufacturing, and home construction reports. As we have been repeating for quite some time, the underlying state of the economy has not been strong, despite some periodic positive announcements, the Fed’s insistence of strength, and stock market highs. This week’s job creation came in at 1/3 of the “expected” consensus, further indicating that these numbers mean nothing on the surface, as they are often revised (as we also often repeat). Earnings from major companies were also mixed, with many retailers failing miserably.
Astrologically, Virgo season (Aug 23 – Sept 22) has settled in, and its perfection seeking energies have taken center stage (discussed in our recent Sign Language – Virgo Season blog, dated 8-8-25). Virgo season, which we have noted, is typically weak in the equity markets. Its focus on excellence and perfection will tend to be revealed in the punishment of stocks who miss earnings expectations, do not provide a highly positive forward-looking statements, and/or are over-valued compared to normal industry standards. In other words, there is no more free lunch, at least in the short term, for companies not proving their worth.
With the planet Venus’ ingress to the sign of Leo on Monday last week (Aug 25), a positive energy toward relationships and partnerships was signified. As previously discussed, the Consumer Discretionary sector usually benefits during this transit, as individuals like to “treat” themselves.
The planet Mercury has now entered Virgo (one of its 2 “ruling” signs), as of September 1st. Globally, this suggests better communication between world leaders, which may have already begun. This could relate to global market consistency, which would be another positive factor.
The planet Mars position in the sign of Libra (a peaceful, balanced sign) also suggests a potential consolidation and fairly-priced market, though its opposition to Saturn and Neptune in the sign of Aries (ruled by Mars) can result in further confusion (Neptune) and challenges (Saturn) regarding global conflict and financial markets. Its ingress to the sign of Scorpio in about 2 weeks, however, could ignite more fireworks. This also supports the likelihood of increased volatility over the next month or so.
Leading sectors, with over 50% of stocks trading over their 200-MAs, continue to include Communications Services, Consumer Discretionary, and Utilities at 80% or above (though the latter had faltered short-term), while Energy and Consumer Staples continue to lag. 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 recent ingress into Gemini).
Gold (ruled by the Sun), and Silver (ruled by the Moon), continued their upward move this week. As noted, the Jupiter in Cancer transit, which began on June 9, is favorable for silver, and jump-started a much-anticipated rally in that metal. The Gold to Silver Ratio (covered in our publication), has remained steady for the past month or so, closing at 87.3, up slightly from last week’s close of 86.6 (remaining near its lowest level since mid-December). The outlook remains the same for both, however, as any dip in these metals continues to be a long-term buying opportunity. Copper has also been rallying heavily since April, following a sharp downturn, and its strength should continue absent any recession concerns.
***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.
