Today's Fear and Greed Index surged from 84 to 90, entering an extreme greed state.

In the past, there have been three similar situations: the end of June 2019, the end of October 2020 to early February 2021, and early March 2024.

The first two instances were characterized by a rapid reversal and a prolonged maintenance, with the logic being that extreme greed is difficult to sustain during a bear to bull transition, while a bull market climax can persist.

The current trajectory needs to be assessed by considering a combination of market trends, macroeconomic environment, and other factors. If we are in the early stages of a bear to bull transition without support, it may be similar to the previous two quick reversals;

If the market has a strong upward trend and a positive outlook, then there is a possibility of maintaining a situation similar to 2020. Investors need to cautiously monitor dynamics and adjust strategies accordingly.