Fear Spikes to Extreme as Tech Slides and Energy Holds Firm
Scale In Protected. Markets are sending a clear warning: fear has spiked sharply while momentum has faded.
October 18, 2026 at 6:04 PM EDT
Justification
Markets are sending a clear warning: fear has spiked sharply while momentum has faded. The VIX, Wall Street's fear gauge, jumped to 20.0 — above its one-year average of 18.0 — and RSI, a momentum gauge, sits at 43.8, close to oversold territory. Stock valuations remain elevated, priced higher than roughly 75 out of every 100 months since 2006. With options still near fair cost, buy protective puts on existing positions and watch the 10-year Treasury yield at 5.1% for any further move that could pressure growth stocks.
Since the Last Issue
- Fear & Greed Index dropped from 32 to 18 — shifting from Fear into Extreme Fear territory since the prior issue
- VIX surged from 16.5 to 20.0, crossing above its one-year average for the first time in recent weeks
📡 Today's Opportunity Radar: FCG · XLU · XOP. Full ideas in the Opportunity Radar section below.
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