Recently, the market sentiment has shown a notable shift. The Fear and Greed Index has gradually retreated from its previous high of greed and is currently stable at a neutral level of 45. This change indicates that the market is gradually cooling from a state of extreme greed but has not yet fallen into panic; investors still maintain a certain level of confidence, although their enthusiasm has declined compared to a few weeks ago.

Looking back at historical data, last month the index was still in the greed range of 68, while it was at a neutral level of 46 during the same period last year. Throughout the year, it reached a peak of 88 in extreme greed and a low of 15 in extreme fear. Although the current market sentiment is relatively low, it has not yet fallen into the panic zone, which may indicate that many quality assets are undervalued.

For investors who have been waiting for a bottom-fishing opportunity, this is undoubtedly a positive signal. Market sentiment is starting to cool down, and asset prices may be approaching support levels, but panic has not yet fully spread. At this time, making arrangements carries relatively controllable risks. It is important not to be influenced by short-term fluctuations, to adopt a strategy of building positions in batches, and to patiently wait for the market to warm up.

In summary, the current sentiment index shows that the market is in a neutral to low state, which is precisely a good opportunity for wise investors to observe and screen investment targets. Staying calm and rational, and seizing the potential investment opportunities brought about by the cooling of market sentiment, may lead to considerable gains in the future market recovery.