CNN Fear & Greed Index 3/31/2025

 

???? Timeframe Covered: April 2024 – March 2025

Top Chart: SPY (S&P 500 ETF)
Bottom Chart: CNN Fear & Greed Index

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???? Key Observations & Correlations

1. April–May 2024

• Fear & Greed Index: Rapid decline into Extreme Fear

• SPY: Dropped sharply, but started stabilizing and forming a bottom

• ? Perfect contrarian opportunity — Fear peaked, SPY bottomed shortly after

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2. June–July 2024

• Fear Index: Gradually rising toward neutral

• SPY: Strong upward momentum

• ?? Fear easing aligned with early price rally; confirms trend shift

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3. Aug–Oct 2024

• Fear Index: Strong climb into Greed and near Extreme Greed

• SPY: Continued uptrend, reaching local highs around October

• ?? Greed peaked early Oct, SPY peaked shortly after
  (Lag between emotional optimism and price reversal)

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4. Nov–Dec 2024

• Fear Index: Choppy decline (from Greed to Neutral/Fear)

• SPY: Choppy top and consolidation, signs of exhaustion

• ???? Divergence: Sentiment remains optimistic while price starts to weaken

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5. Jan–Feb 2025

• Fear Index: Falls into Extreme Fear

• SPY: Breaks down sharply from highs (~$540 → ~$470)

• ? Classic panic moment — both emotion and price fall together
  (Usually signals short-term bottom formation)

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6. March 2025

• Fear Index: Still at Extreme Fear (21)

• SPY: Nearing prior support zones (~$464)

• ???? Opportunity window: Fear is high again, price consolidating

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???? What This Means for Strategy

? Ideal Buy Zones:

• April–May 2024 & Feb–March 2025
  When:

  • Fear & Greed Index < 25

  • SPY hitting local support levels

?? Ideal Sell or Trim Zones:

• October 2024
  When:

  • Fear & Greed Index > 75

  • SPY peaking after a strong rally

  • RSI likely overbought

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???? Behavioral Pattern Summary

Fear/Greed State	SPY Price Tendency
Extreme Fear	Usually near or just past local bottoms (good for entries)
Greed / Extreme Greed	Near price tops, often before a correction
Neutral	Trending phase or post-panic recovery

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???? Final Insight

???? Fear & Greed Index is most powerful when confirming reversals:

• Use Extreme Fear + support on chart + RSI < 35 → buy setup

• Use Extreme Greed + price plateau + RSI > 70 → trim/sell setup