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 7, 2026.
The gauge surged into the mid-Greed category this week, increasing 22 points from last week’s close of 42. This was reflected in the S&P 500, which rose 268 points, from 7,489 to 7,757, with the Dow Jones hitting another all-time high, and the markets basically shrugging off any type of bad news.
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) = GREED
Junk Bond Demand (non-govt. bond yield spread) = EXTREME GREED
This week, 4 of these 7 factors changed categories, as Market Momentum flipped from Fear to Greed. There is divergence, however, as both Strength and Breadth remain in the Fear category. The all-important, and wildly fluctuating Put to Call Ratio, also flipped again, from Fear to Greed, suggesting the rally may be becoming vulnerable. Oddly, Safe-Haven Demand also shifted to Greed, as precious metals also rose.
Moving Averages’ (MAs) bullish sentiment also improved across the board, with the longer-term 200-days shooting up to 61%, vs last week’s reading of 56% (with the DJIA leading at 80%). The shorter-term MAs increased to 64% on the 20-MA (vs 45% last week), while the 50-MA rose to 61% (vs 51.6% last week). Recent Sector Rotation has clouded industry strength, as Healthcare has remained solid and the least volatile, and a resurgence in Communications has finally occurred. Utilities and Real Estate continued their weakness and Energy fluctuates with the daily change in the military conflict perception.
The “Risk-On” sentiment re-ignited this week with the low jobs report and solid earnings, as market expectations of a rate hike in September lowered. The VIX, (market volatility), dropped 1.1 points, to 14.9, by week’s end, vs last weeks close of 16. As we often note, any break-through of the crucial “20” mark suggests a pullback, which it briefly hit only 7 trading days ago, so keep an eye on this gauge. 10-yr bond yields came down slightly, 0.8 points, to 4.64%, from last week’s close of 4.72%, after those same reports helped boost the markets short-term. Interest rates reached 19-year highs last week, which also heeds caution.
Economic reports this week focused on those employment numbers, which were reported much lower than expected, with ADP/Non-Farm Payrolls/JOLTS (job openings) all falling well short of expectations.
Astrologically, we continue through Leo season (self, leadership), until August 22. Leo, a fixed, fire sign, is known for more weakness in market performance than its predecessor, Cancer, which is historically the 2nd strongest. Major uncertainty persists in current market conditions, which are not expected to change anytime soon. Please review our Sign Language – Leo blog, dated 7-8-26 for more details.
Current shorter-term transits/aspects of note include the planet Venus, which transited from the sign of Virgo to Libra (Aug 6), ending the more critical, meticulous, and selective (Virgo) energies to a fairer, more balanced, overall market in the short-term. As is typical of Virgo, the “loved” stocks flourished, while the “hated” were punished, as we suggested, coinciding with “earnings season,” which often distinguishes the strong and weak companies. Mercury also changes signs today, moving from Cancer to Leo, signifying major communications among global leaders, as it approaches a conjunction with the Sun. This could also move markets based on those positive or negative headlines.
Longer-term, the planet Jupiter is positioned the sign of Leo until July 26, 2027, highlighting fashion, self-pleasing products, creativity, and travel (signified by the Consumer Discretionary sector), as well as leadership, defense, and gold (Please refer to our Trader Transits – Jupiter in Leo blog, dated 6-12-26, for further information). Stocks in those sectors have shown some improvement (as expected), which could continue along with rising consumer sentiment. Keep in mind that travel-related stocks are also sensitive to oil prices, which are vulnerable to the military conflict status (or “perceived” status). Also, as discussed heavily in recent months, Uranus (sudden, unexpected events/high technology) will remain in the sign of Gemini (communications, transportation, advanced technology) until 2033. Uranus’ energies continue to be on full display of late, with quick, unexpected reversals, in both directions, as the market cannot seem to make up its mind (Gemini). As we’ve also mentioned in the past several weeks, do not be “surprised” if this type of market action continues with these other planetary transits. Please also review our Trader Transits – Uranus in Gemini blog, dated 3-30-26, for more details.
As we have noted for over 1 year now, sectors of the technology industry that are likely to continue their advance into the future include AI, robotics, quantum computing, and space development, with both Pluto positioned in Aquarius, and Uranus in Gemini for many years to come, though they will experience pullbacks (sometimes sizeable) along the way.
Gold (ruled by the Sun), and Silver (ruled by the Moon), rose sharply this week, after a rather long consolidation period. The Gold to Silver Ratio closed at 68.3, falling 1.8 points from last week’s close of 70.1, remaining rather neutral. As we continue to stress, both metals remain good buys after pullbacks, so long as central banks continue to buy, which they are, and Safe-Haven investments remain popular, which is expected.
Finally, Bitcoin (ruled by Uranus) has hopefully found a bottom. Its Fear & Greed Index closed at 40, vs last week’s close of 36, the 3rd straight week of slight improvement, as the asset continues to consolidate. The Clarity Act, a bill designed to regulate the cryptocurrency and blockchain spaces in the U.S., and could boost the sector, advanced through the committee on Friday, July 24, and now awaits Senate approval. Please see our Did You Know? – About The Clarity Act blog, dated 7-26-26, for further information.
***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.
