The higher these indicators stand compared to their historical levels, the more fear there is in the market.
- VIX (market volatility).
- Put/Call ratio.
- Spread between 200-day index moving average and the index itself.
- Spread between number of stocks hitting fresh 52-week lows and number of stocks hitting fresh 52-week highs.
- Spread between yield of junk bonds and yield of investment grade bonds.
- Spread between bond returns and stock returns.
- Spread between volume in declining stocks and volume in advancing stocks.