Greed-Fear Index

A friend just showed me this interesting chart - Greed-Fear Index. It attempts to show if we are now in the region of extreme bearishness, or extreme bullishness.

From the website, is says "The Greed-Fear Index uses a blend of global emerging markets as the benchmark for the greed side of the equation. These emerging markets are Brazil, China, South Korea, South Africa, Russia, India, Israel, Chile, Hong Kong, Thailand, Indonesia and others which make up less than 10%. The mix of these markets is uneven and proprietary and may change without notice."

I've posted the link to it in the right panel, so that you can refer to the most updated chart regularly:
http://www.greedfearindex.com/charts/plot_GFI_behavioral_finance_bullish_bearish_market_sentiment.php

Coincidentally,  i posted a link to market harmonics earlier. Check out the equity put-call ratio:

The put-call ratio also attempts to indicate extreme sentiments.

Essentially, they are both screaming out the same message - Oversold!