Which indicator could help in understanding market sentiment?

1 View
Sugita Takashi Lived in Tokyo
Answered 3 months, 2 weeks ago
<p>Several indicators can help understand market sentiment. The Volatility Index (VIX), often called the "fear gauge," measures market uncertainty. A high VIX indicates fear and uncertainty, while a low VIX suggests confidence. The Put-Call Ratio (PCR) compares the volume of put options (representing bearish bets) to call options (representing bullish bets). A high PCR suggests bearish sentiment, while a low PCR suggests bullish sentiment. Sentiment surveys, like those by the AAII, measure investor outlook<br></p>