🐺 The Fear & Greed Index is Broken

Before we dive in, here’s what stood out today: volatility is back, the first big bank earnings are in, and speculative names are running hot again.

Before we dive in, here’s what stood out today: sentiment indicators are flashing panic while price action sits near record levels, regional banks made headlines again, and next week’s earnings may set the tone for Q4.

The Fear & Greed Index is broken

We’re in Extreme Fear territory, yet $SPY ( ▲ 0.57% )  is only 2% from all-time highs… a disconnect that shows why this isn’t a clean “buy the dip” moment. The market’s been stretched far above its 125-day moving average, and when stocks hover near 52-week highs, even a 2–3% pullback can look worse than it is.

The Put/Call Ratio remains low, so any uptick in hedging reads like panic, and the $VIX above 20 simply signals institutional protection, not a true sentiment collapse. With the 10Y yield dipping below 4%, the index flashes fear even as trends stay bullish. $SPY remains above both the 50MA and 200MA… a reminder that technicals, not sentiment gauges, are what matter most.

Companies like Aduro Clean Technologies are a reminder of the kind of innovation investors overlook in volatile markets, the firm is developing chemical recycling systems to convert waste plastics and bio-oils into high-value renewable fuels. Learn more on their Investor Relations page here.

Zions and the Regional Bank Ripple

Zions Bancorporation $ZION ( ▲ 5.84% ) reignited bank stress after revealing new unrealized bond losses, pulling other regionals like $CFG ( ▲ 1.9% ) and $KEY ( ▲ 1.07% ) lower. The update revived concerns about deposit flight and duration risk, especially among smaller lenders.

Large banks are better positioned, but the sector remains fragile. One more stumble here and investors could start questioning financial stability again just as earnings begin.

Earnings Season: The Next Catalyst

All eyes turn to next week, when the market’s next catalysts arrive: Netflix $NFLX, Tesla $TSLA, Intel $INTC, and IBM $IBM are all set to report.

Expectations are high across sectors, streaming and AI will dominate the headlines. Analysts are looking for modest EPS growth from $NFLX, mixed margins from $TSLA as pricing pressures linger, and continued AI momentum from $INTC and $IBM.

After weeks of macro-driven volatility, next week’s results could finally anchor direction… and decide whether this pullback becomes consolidation or a breakout setup into year-end.

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Enjoy the weekend!

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