Will The Stock Market Crash in 2023? This Indicator Says Yes

Will the Stock Market Crash in 2023?

The stock market is soaring in 2023 with the NASDAQ and S&P 500 up 14% and 8% YTD so far. However, the bull party may be coming to an end according to this key stock market indicator.

CNN’s Fear and Greed Index Sits at 76

Stock Market Trader and Entrepreneur Chris Johnson posted a cautious tweet on February 4th indicating that it may be time to sell stocks.

CNN’s Fear and Greed index tracks the emotional behavior of the stock market. The markets are in “extreme greed” mode according to this indicator so be cautious right now because a lot of stocks are up big.

What to Do Next?

I’ll definitely be looking to buy some puts as a hedge against my long positions and maybe close out some of my long call options.

Stocks like Amazon (AMZN) and Alphabet (GOOG) could continue falling below $100 after reporting poor Q4 2022 earnings. Small cap plays could sell off as well.

This doesn’t mean that the stock market will crash all the way back down to extremely low levels however I think many investors will take profits on their January gains pretty soon.

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