FEAR & GREED INDEX 60
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 60 as of the close on Friday, May 29, 2026.
The gauge remained in the mid-Greed category this week, edging up 1 point, from last week’s close of 59. The S&P 500 gained for the 9th consecutive week, up an impressive 107 points, from 7,473 to 7,580. As a result, the S&P ended the month of May up almost 1%, again debunking the “Sell in May and Go Away” thesis we have often discussed. The tech heavy Nasdaq was especially strong, gaining about 8% for the month.
The 4 major indexes’ 200-day MAs (Moving Averages) internal sentiment remained in the bullish zone, as the number of stocks making new highs on all indexes sits between 57-63%, with the Nasdaq leading at 63%. The shorter-term 20 and 50-day MAs did start to decline slightly this week, however, indicating a potential slowdown in the 9-week rally.
The “Risk-On” sentiment continued through the week, consistently climbing led by the technology sector. 10-yr bond yields closed at 4.44%, down vs last week’s close of 4.56%, which helped further the market gains. However, Stagflation concerns, when the economy is slowing and inflation is rising, continues to be a concern.
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) = EXTREME 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) = EXTREME GREED
Junk Bond Demand (non-govt. bond yield spread) = EXTREME FEAR
This week, only 1 of these 7 factors changed levels, as Junk Bond Demand slid further into greater Fear, based on the dangerous level of bond yields. Despite the rise in markets, the strength and breadth categories also remain at the Fear level, signifying the market internals are not as impressive as the market itself. The all-important Put to Call Ratio (used more by short-term traders) continues to be heightened at Extreme Greed, reflecting the enthusiasm of the markets, helping to suggest a possible pullback, which has become a very popular belief of many leading analysts.
The VIX, measured by Market Volatility, decline again this week, closing lower by 1.4 points at 15.3, vs last weeks close of 16.7, as equities remained stable. As we often note, any break-through of the crucial “20” mark would indicate a pullback as well.
Energy prices declined this week with increased investor sentiment regarding an end to the global military conflict, helping markets advance, however, this ever-changing situation remains very volatile. As markets continue to show signs of divergence and over-extended conditions to the upside, the likelihood of a pullback increases. A large focus in the markets in recent weeks has become the SpaceX IPO, scheduled for 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.
Economic data was solid this week concerning manufacturing, jobs, housing, and personal income. Consumer Sentiment remained very low, however, as it has for several months.
Astrologically, as we continue through Gemini season (May 21 – June 20), an air, 2-sided sign, which is seasonally more volatile than Taurus. The expected drop in the VIX in Taurus season has developed, 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, also transited the sign of Gemini (one of its two “home” signs with Virgo), from May 17 to tomorrow, June 1, 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 will now move to the sign of Cancer, a water sign, (for over 2 months until Aug 9), signifying a shift in mood and sentiment, likely accompanied by increased market volatility, highlighted by its next retrograde period at the end of the month.
The planet Venus, also transiting the sign of Cancer (May 18 – June 13), provides a shift to more “love of the home” stocks and sectors including cyber-security, and real estate/home improvement. It also coincides with a dip in cryptocurrencies since it exited Gemini, which was favorable for that sector.
The planet Mars also recently changed signs, transiting from the sign of Aries (its “ruling” sign with Scorpio), to the sign of Taurus (May 17 – June 28), cooling from its ultra-aggressive energies to more stable conditions. Mars in this sign tends to symbolize a lean toward longer-term plans (investments) rather than quick aggressive action. This transit could also hold back Real Estate, as Mars is not favorable in Taurus, an earth sign.
As noted, the much-anticipated Uranus (sudden, unexpected events/high technology) entry into the sign of Gemini (ruled by Mercury - considered a lower-level Uranus), 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, and do not be “surprised” if this type of market action continues with the current Mercury and Uranus energies, and Mars approaching Uranus, forming a conjunction on the 4th of July, suggesting “fireworks” just prior and after that weekend date. Please review our Trader Transits – Uranus in Gemini blog, dated 3-30-26, for more details.
Leading sectors have now shifted as Energy, which is heavily dependent on the ever-changing status of the Middle-East conflict, and Utilities, a safe-haven during turbulent times, have suddenly dropped significantly. Any rise in market uncertainty, however, can again quickly change the market sentiment. Meanwhile, Infotech, Consumer Discretionary, and Real Estate quietly continued to rise, at least in the short-term, though any rate increase in the future would also change that sentiment.
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), were very volatile this week, before closing essentially flat. The Gold to Silver Ratio closed at 60.2, up only half a point from last week’s close of 59.7, remaining rather neutral, but slightly favoring gold. 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) was relatively quiet this week. Its Fear & Greed Index now reads 34, solidly in Fear territory, closing just 1 point higher than last week’s close of 33. 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.
