Extreme greed index at 78: The Fear and Greed Index maintains a value of 78, marking extreme greed. This indicates investor enthusiasm reaching unsustainable levels, often a precursor to market corrections. Elevated greed levels like these can lead investors to overvalue assets, paving the way for volatile market conditions.

Potential market volatility risks: Despite favorable developments bolstering Optimism, sustained HIGH levels of greed can cause sudden swings in response to negative news. Investors should exercise caution, as emotional sentiment-driven dynamics can amplify risks, leading to sharp market reactions.