For the first time in six months, U.S. investors are in a state of "extreme Fear," according to the widely cited Cable News Network's Fear and Greed index.
For the first time since March 15, the index on Wednesday reflected "extreme fear." On March 15, the market had still not recovered from the shock caused by the collapse of Silicon Valley Bank. The Index is calculated using a number of data, including the Cboe Volatility Index VIX, known on Wall Street as the 'fear gauge.'
The Vix rose as high as 18.70 on Wednesday, its highest level since May 25, according to FactSet data.
According to CNN.com, in addition to the Vix index, the "Fear & Greed" index includes other data, including a comparison of the number of stocks listed on the New York Stock Exchange that have made 52-week highs versus 52-week lows.

For the first time in six months, U.S. investors are in a state of "extreme Fear," according to the widely cited Cable News Network's Fear and Greed index.
For the first time since March 15, the index on Wednesday reflected "extreme fear." On March 15, the market had still not recovered from the shock caused by the collapse of Silicon Valley Bank. The Index is calculated using a number of data, including the Cboe Volatility Index VIX, known on Wall Street as the 'fear gauge.'
The Vix rose as high as 18.70 on Wednesday, its highest level since May 25, according to FactSet data.
According to CNN.com, in addition to the Vix index, the "Fear & Greed" index includes other data, including a comparison of the number of stocks listed on the New York Stock Exchange that have made 52-week highs versus 52-week lows.
The index also incorporates activity in the options market in the form of a five-day put to call ratio. The ratio now stands at 1.07, also the highest level since March.
This ratio shows that demand for put options has exceeded demand for call options. A put option represents insurance against further declines in the stock market, while a call option represents a bet that a stock index or individual stock will rise. Option holders have the right to buy or sell at an agreed price before a set expiration date, but have no obligation to do so.
Interestingly, the only index in the Fear & Greed index that does not reflect "fear" or "extreme fear" is a measure of junk versus investment-grade bond spreads, which have not changed much despite the rise in long-term Treasury yields.