VIX vs Fear and Greed Index

Two gauges get called "the fear index": the VIX and the CNN Fear and Greed Index. They are often quoted as if they were the same thing, and on some days they point in opposite directions.

The short answer: the VIX is one number from one market, the price of S&P 500 options, and it tells you how big a move traders expect over the next 30 days. The Fear and Greed Index is a 0 to 100 score built from seven signals, one of which is the VIX itself, and it tells you how nervous or greedy the crowd is. Use the VIX to size the swings and Fear and Greed to read the mood, and treat any disagreement between them as a reason to look closer, not as a trade.

Both gauges sit side by side on the free dashboard. This guide explains what each one measures, how to read the numbers, and what it means when they split.

Educational only, not financial advice. Neither gauge predicts where the market goes next.

Right now the two disagree: the VIX is calm while Fear and Greed reads fear. That happens when options traders are relaxed but breadth, price strength or safe-haven demand is weak.

These values are from when this page was generated. A quote can be older than the page, and a market that is closed shows its last reading. The dashboard updates them live.

The VIX is calculated from the prices of S&P 500 index options that expire in roughly the next month. When traders pay more for protection, option prices rise and so does the VIX. It is quoted in annualized percentage points, which sounds abstract but converts into a practical rule: divide by about 16 for a one standard deviation daily move, and by about 3.5 for a one-month move.

Read it as a range, not a forecast: if returns were normally distributed, the S&P 500 would stay inside the implied move about two days out of three. Real markets are not normal, and the big days are the point. The VIX closed above 80 at its extremes in late 2008 and in March 2020, and its long-run average since the 1990s is roughly 19 to 20.

Two things the VIX does not do. It does not say which way the market will move, and a low reading is not the same as greed: it only says options are cheap. For the wider picture of how volatility fits with rates, the dollar and commodities, see How Interest Rates Affect the Markets.

CNN's Fear and Greed Index combines seven signals into one score from 0 to 100. Each signal is compared with its own recent history, so the score moves when the mood changes, not when a single number is high or low in isolation. The dashboard labels the score extreme fear below 25, fear from 25 to 44, neutral from 45 to 54, greed from 55 to 74 and extreme greed from 75.

Only one of the seven looks at options volatility. The other six look at price trends, how many stocks take part, option bets, credit markets and flows into safe assets, which is why Fear and Greed can notice weakness that the VIX misses.

Right now the two disagree: the VIX is calm while Fear and Greed reads fear. That happens when options traders are relaxed but breadth, price strength or safe-haven demand is weak.

A disagreement is a reason to look at what is driving the score, not a trade. A single input, such as the junk bond gap, can move the composite by itself.

• Start with the VIX for size. It tells you how large a normal day is right now, which matters for how much you are willing to risk on one position.
• Read Fear and Greed for mood. It tells you whether the crowd is nervous or complacent, which is context for how the market might react to news.
• If they disagree, look underneath. The world heatmap and the sector heatmap show whether the market is broad or narrow.
• Treat extremes as context. Markets can stay fearful or greedy for weeks. Neither gauge says when the mood will turn.

Both gauges are step three of the five-minute morning market check, where they sit next to the open sessions and the day's headlines.

The VIX and the Fear and Greed Index are not rivals. The VIX is a precise, narrow measure of how much movement options traders expect. Fear and Greed is a broader, blurrier score of the crowd's mood, with the VIX as one of its seven parts. When they agree, the reading is cleaner. When they disagree, the useful move is to open the inputs and see which part of the market is behind the split. Neither tells you where prices are going.

What is the difference between the VIX and the Fear and Greed Index?

The VIX measures one thing: how much volatility S&P 500 options imply over the next 30 days, which makes it mostly a fear gauge. The Fear and Greed Index is a 0 to 100 score that blends seven signals: price momentum, 52-week highs versus lows, market breadth, put and call options, volatility (the VIX against its own 50-day average), junk bond demand and safe-haven demand. So the VIX is a single forward-looking input, and Fear and Greed is a broader mood score that includes the VIX as one of its parts.

Does the Fear and Greed Index include the VIX?

Yes. One of its seven inputs is market volatility, which compares the VIX with its 50-day moving average. A VIX above its recent average pushes the score toward fear, and below it pushes toward greed. Because the VIX is only one of seven inputs, the two can point in different directions.

What is a high VIX?

On the dashboard, a VIX below 20 is labeled calm, 20 to 30 elevated and above 30 stressed. The long-run average since the 1990s is roughly 19 to 20, and the index closed above 80 at its extremes in late 2008 and March 2020. The level is also a rough guide to expected moves: a VIX of 16 implies about a 1% daily move and about 4.6% over a month, as a one standard deviation estimate, not a forecast.

What do the Fear and Greed scores mean?

The dashboard labels 0 to 24 extreme fear, 25 to 44 fear, 45 to 54 neutral, 55 to 74 greed and 75 to 100 extreme greed. Extreme readings show crowded positioning, not a timing signal: markets can stay at an extreme for weeks.

Which is better, the VIX or the Fear and Greed Index?

Neither is better; they answer different questions. Use the VIX to judge how large daily swings are likely to be, and Fear and Greed to judge the mood of the crowd. When they disagree, look at which inputs are driving the score. Neither predicts direction, and this is educational, not financial advice.

Why can the VIX be low while Fear and Greed shows fear?

The VIX only reflects what S&P 500 options traders expect. Fear and Greed also tracks breadth, how many stocks are at 52-week lows, put and call activity, junk bond demand and safe-haven flows. A market can be calm in options yet weak underneath, for example when a few large stocks hold the index up while most fall, so the composite shows fear while the VIX stays low.

Where can I see the VIX and Fear and Greed live?

Both gauges are side by side on the Global Markets Dashboard at gmdmarkets.com, which is free. The page you are reading also prints the latest readings in its Right now table.

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