Market Sentiment

Market Sentiment

Definition

The overall attitude and emotional state of investors toward a particular market or security, reflected in trading activity, survey data, and various sentiment indicators that can drive short-term price movements.

Key Points

  • Drives short-term market movements
  • Can be measured through various indicators
  • Extreme sentiment often signals reversals

Examples

Bullish sentiment drives buying pressure
Extreme pessimism often marks market bottoms