Citigroup Panic/Euphoria Index

This contrarian index is approaching all-time high at 0.91 and is more than double the 0.41 level where euphoria is entered. When there is a Euphoric reading, it shows that everyone is in the market. Historically, a reading in euphoria levels generates a better than 80% probability of stock prices being lower one year later, while panic supports a better than 95% likelihood that stock prices will be higher one year later.