Key insights
- The Fear & Greed index is nearing extreme greed levels, but the VIX is significantly higher than the last time the index was at similar levels. This divergence suggests underlying market tension between bullish sentiment and bearish pressures, potentially leading to increased volatility and uncertainty for US equities.
It's crazy how different the market is today, compared to the last time the Fear & Greed was this high ~71 to be exact.. with 75 marking extreme greed. Cboe's volatility index, $VIX is currently up 27% YTD, sitting at $19 per share. The last time the F&G index was this high was late July of last year.. when $QQQ was on an insane AI run However, in July of last year, $VIX was trading at $15 per share.. down 67% from April '25 highs At $15 per share, $VIX was trading ~21% lower than it is today...
Showing objective tension between institutions that are hungry to buy in... and volatility caused by short sellers and bears.
Where do you think the market goes from here? And do you think there is a way to trade around this volatility?