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With a current value of 43 it close to the middle of it's 0-100 range and therefore in the "Neutral" area, just leaning a little towards "Fear". But how it comes to 43 is highly unusual:

- 2 of it's 7 components are signaling "Extreme Fear" (HighLows & McClellan Volume)
- 2 are signaling "Extreme Greed" (Momentum & PutCall Options)

In the years I am following it I've never seen such an extreme discrepancy. For me this means the current market is "not normal", whatever that might mean. At a "tipping point" where something drastic can happen?

Thoughts of an amateur (who currently holds as much % cash as never before and therefore might be biased).

Any comments?

Unfortunately - a Fear/Greed classification is extremely coarse ....one has to look levels deeper.

(1) The 2 breadth indicators ( H-L and McClellan) points to deteriorating breadth - whether that's extreme fear level .... unknown. But having weak breadth at market highs is not a good sign - so this classification seems warranted

(2) VIX at 12 is not neutral - it shows Greed. That's possibly in the bottom 5 percentile values

The 2 Bond indices are FLAWED

(3) the Overall one because its built on a SAFE HAVEN assumption. ie when market corrects people flee to Bonds. That's just not the environment here - infact quite the opposite. The last bear was on an Interest Rate correction - ie both Bonds and Equities dropped.

Currently rates are backing away - with receding concerns of inflation. Lower rates = Better bond returns .

(4) The Junk spread is interesting - I think its got to do with more of a Supply/Demand situation and some concerns of deteriorating credit. When 10Y Treasuries are yielding close to 5% (4+% steady) - You need a LOT of spread ie Yield issuance to make the extra risk attractive. REITs might just be a better option than Corporate.

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With a current value of 43 it close to the middle of it's 0-100 range and therefore in the "Neutral" area.... But how it comes to 43 is highly unusual....
2 of it's 7 components are signaling "Extreme Fear" (HighLows & McClellan Volume)....

That discrepancy gets ever more interesting. While both components are still signaling "Extreme Fear" with 58 the overall index value is now even in the "Greed" zone.

Again: Highly unusual over the years, not sustainable. Something has to give. The greed, with the optimistic natures finally realising that even the big 7 won't go up forever and taking their profits? Or the fear, with the last skeptics (me :) finally turning around and buying?

We are living in interesting times.

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