CNN Fear & Greed Index Hits 70: Is the Market Topping Or Headed Higher?
Fear & Greed surges from extreme fear to 70 in weeks—fast rebounds can spark rallies, not crashes. But what happens if it tops 80 and stalls?
By Rebel Capitalist News Desk
The CNN Fear & Greed Index just rocketed from 55 to 70 in a single week—one of the fastest sentiment swings since 2010. What does that blistering shift tell us about where stocks might head next?
In this piece, we’ll unpack why a rapid surge into greed isn’t always a sell signal and highlight the critical levels investors must watch to navigate the coming twists.
Today, the CNN Fear & Greed Index reached 70, signaling that markets are leaning heavily into Greed territory.
According to CNN's data updated this morning (May 13, 2025), this is a sharp rise from 66 yesterday and up significantly from 55 a week ago, when the index was sitting in Neutral territory.
At first glance, this might seem like a clear warning sign that the market is becoming overheated. But it's important to add nuance here.
When the Fear & Greed Index rises quickly from extreme fear to greed…as it has recently…history shows that this can actually signal bullish momentum in the short term.
For example:
In early 2017, the index moved rapidly from fear to greed, and the S&P 500 kept rising for months.
In mid-2019, a similar rapid move occurred, and the market continued higher.
These periods reflect re-risking behavior, where investors and funds who were overly defensive scramble to reposition back into stocks as fears fade.
However, when the index grinds slowly higher and starts hovering above 80 for an extended period, that is when the danger zone historically appears.
While fast rebounds often precede fresh rallies, the real question is what distinguishes a harmless cheer from a reckless frenzy. Keep reading as we dissect why context is everything when interpreting these sentiment swings.
Why Fear & Greed Can Be Bullish in Fast Rebounds
While the Fear & Greed Index is classically seen as a contrarian indicator, its context matters. When the index rapidly rises from fear to greed, it's often part of a relief rally or short-covering phase, where markets can continue higher before peaking.
This is different from when the index slowly climbs and stays above 75-80, which tends to happen after markets have been rallying for months, and complacency takes hold.
Right now, the move from extreme fear to greed has happened in less than a month, reflecting a rapid sentiment shift.
Before you load up on longs, however, ask yourself: are we in a breathless squeeze out of oversold lows—or marching toward the complacency cliff? In the next section, we’ll turn to the charts for real-world playbooks.
Historical Examples of Fast Sentiment Shifts Leading to Bullish Continuation
The chart above highlights how:
In 2017, the index surged from fear to greed rapidly and the S&P 500 continued higher for several quarters.
In 2019, after fears of a slowdown, the index rebounded quickly and the market pushed to new highs.
These episodes suggest that a fast move from fear to greed alone is not necessarily bearish, especially if markets are rebounding from oversold levels.
The true risk emerges when the index crosses above 80 and stays there, which historically marks the final phases of euphoria.
Those past rebounds look comforting…until you see what happened once the index wouldn’t budge below 80. Up next: the danger zone you absolutely don’t want sentiment to breach.
Key Danger Zone Remains Above 80
According to the CNN chart and historical data:
Greed readings between 70-75, especially after a quick shift from fear, often support ongoing rallies.
When the index moves slowly and hovers above 80, that is when markets have been most vulnerable to corrections.
This suggests that if the Fear & Greed Index continues to climb and crosses into the 80+ range over the next few weeks, it would become a much stronger contrarian warning signal.
With the “line in the sand” drawn at 80, our next task is monitoring today’s setup…how close are we really to the brink of complacency?
The Setup Today: Context Is Key
Looking at the current setup:
The index has surged from Extreme Fear (below 5 in April 2025, based on the latest chart) to 70 today.
The S&P 500 is near recent highs, but coming off a recent soft patch.
Investors are repositioning after several months of volatility and fear.
This looks more like the fast-moving re-risking phases of 2017 and 2019, rather than the slow, grinding complacency of 2018 or 2020.
That rapid rebound may feel reassuring, but history warns: euphoria can creep up when you least expect it.
In the final section, we’ll outline the precise warning signs that could flip today’s optimism into tomorrow’s stumble.
What to Watch Next
Investors should pay close attention to:
Whether the Fear & Greed Index continues rising quickly and crosses 80.
If the index hovers above 80 for more than a few weeks, historical patterns suggest a rising risk of a correction.
Short-term, the recent rapid move could still support bullish price action, unless sentiment gets stuck in extreme greed territory.
The speed of this sentiment swing has delivered a bullish jolt…but only until it doesn’t.
In markets, complacency arrives quietly and peaks violently. Keep your eyes on the 80 mark—it will tell you more than any chart ever could.
Conclusion: Respect the Speed of Sentiment Shifts
Today’s Fear & Greed Index at 70 is a sign that investor confidence has returned rapidly.
While many interpret this as a sign of euphoria, history shows that when sentiment shifts quickly from fear to greed, the market can often continue higher in the near term.
The real danger emerges when the index crosses 80 and stays elevated, signaling complacency and overconfidence.
For now, investors should remain aware of the context and watch closely for signs of the index stalling above 80, which would echo previous market tops like August 2018 or January 2020.
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Reporting by Rebel Capitalist News Desk