No time to relax

Time to look at the CNN Fear & Greed Index to get an impression on market sentiment on the US market. The gauge shows fear compared to extreme greed only one year ago. While not a perfect indicator, it shows that many market participants do not fully trust the current calm and an S&P 500 that is up 15% since the beginning of the year. This becomes clear in looking at the underlying constituents of the index: market momentum and put and call options show extreme greed while stock price strength, stock market breadth and safe haven demand show fear/extreme fear. Not the moment to leave our desks for holidays and fall asleep at the wheel.