Market Sentiment Score
Is the market fearful or greedy? Input the key indicators to get a composite sentiment score.
50
Neutral
Reading the Room: Fear vs. Greed
The market is driven by two emotions: Fear and Greed. Knowing which one is in control gives you a massive edge.
- Extreme Fear (< 20): Investors are panicking. This is often the best time to buy ("Buy when there is blood in the streets").
- Extreme Greed (> 80): Everyone is euphoric. Your Uber driver is giving you stock tips. This is often the time to sell or hedge.
The Indicators We Use
- Trend: Is the market making Higher Highs (Greed) or Lower Lows (Fear)?
- VIX (Volatility Index): Known as the "Fear Gauge." High VIX (>20) means fear. Low VIX (<12) means complacency/greed.
- Advance/Decline Ratio: Are more stocks going up than down? A ratio > 1.5 is bullish. A ratio < 0.5 is bearish.
Common Questions
Can I trade based on this alone?
No. Sentiment is a contrarian indicator at extremes, but it can stay irrational for a long time. Use it to confirm your bias, not to generate signals.
What is a "Neutral" market?
A score between 40-60. This means the market is undecided. It's often a "Stock Picker's Market" where individual stocks move based on earnings rather than macro sentiment.