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