FEAR & GREED INDEX 64
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 64 as of the close on Friday, August 29, 2025.
This figure now sits in the mid-Greed level, after rising only 3 points from last week’s close of 61. The S&P 500 was basically flat, declining about 6 points, from 6,466 to 6,460, after Friday’s fall. The 4 major indexes, which include the S&P 500, Nasdaq, Dow Jones Industrial, and Russell 2000 (small cap index), are now squarely in bullish territory (when over 50% of their components continue to trade over their 200-day moving averages), as the market continues to broaden. Each index is now over 60%, with the Dow leading the way at 77% (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 60%.
The “Risk-On” sentiment has been rather neutral, with the highly anticipated Fed meeting in mid-September. The 10-year bond yields slipped to 4.23% this week, after closing last week at 4.26%, as the interest rate cut in September appears likely, though “stronger-than-expected” inflation reports this past Thursday (that could change that perception), rattled the markets on Friday.
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) = EXTREME 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) = GREED
Junk Bond Demand (non-govt. bond yield spread) = GREED
This week, 5 of these 7 factors changed levels as Greed sentiment persists. The Put to Call Ratio returned to Extreme Greed, from Greed, and both Stock Price Strength and Breadth spiked to Extreme Greed, reflecting the broadening of the market to include more stocks rising than falling. Though Market Momentum slowed, due to the lower volume (typical of late August), September is seasonally weak (as we have noted recently), with last year as an exception. August’s 1.9% gain in the S&P 500 was also a positive indicator in the intermediate term. Consolidation, which has basically been the recent price action, rather than a correction, would be also considered positive in the long run.
The VIX, measured by Market Volatility, remains in Neutral territory, closing at 15.3, after ending the last 2 weeks at 14.2. 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, and should increase later this coming week. This can also increase volatility based on news and market catalysts.
This week’s news was mainly focused on Nvidia (NVDA) earnings Wednesday after the close, and Leading Economic Reports including housing, manufacturing, and Gross Domestic Production (GDP). Nvidia’s earnings were typically strong, though there are concerns over the regulations regarding sales to China. This caused an initial negative reaction, which flattened out on Thursday, but continued on Friday. Volatility in the equities markets is likely to persist for the next 4-6 weeks, as seasonality, and the much-anticipated Fed rate cut decision in their September meeting weighs on investors.
Astrologically, Virgo season (Aug 23 – Sept 22) is underway, as its perfection seeking energies take center stage (please review our Sign Language – Virgo Season blog, dated 8-8-25 for more details). Virgo season is typically weak in the equity markets, and 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 (Aug 25), a positive energy toward relationships and partnerships is signified. The Consumer Discretionary sector usually benefits during this transit, as individuals like to “treat” themselves.
The planet Mercury now enters Virgo (one of its 2 “ruling” signs) tomorrow, September 1. Globally, this suggests better communication between world leaders, which may have already begun. Financially, the Consumer Discretionary sector may see a boost as “treating” or investing in one’s self is a Venus (value) in Leo (self) attribute.
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. 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 Utilities, Communications Services, and Consumer Discretionary at 80% or above, followed by Financials (72%), while Real Estate continues to lag, but is improving. Utilities have declined recently, so beware this trade or holding. 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 in Aquarius, and Uranus recent ingress into Gemini).
Gold (ruled by the Sun), and Silver (ruled by the Moon), advanced again 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 86.6, basically unchanged from last week’s close of 86.5 (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 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.
