Our popular indicator to find out market's sentiment is CNNMoney's Fear & Greed index. The Fear & Greed index is composed of 7 indicators:
- Stock Price Momentum: S&P 500 versus its 125-day MA
- Stock Price Strength: the number of stocks hitting 52-week highs and lows on NYSE
- Stock Price Breadth: the volume of rising stock volume versus declining volume
- Put and Call Options: the put/call ratio
- Junk Bond Demand: the spread between yields on investment grade bonds and junk bonds
- Market Volatility: the VIX
- Safe Haven Demand: the difference in returns for stocks versus Treasuries
The index is scaled from 0-100, where the higher reading indicating more greed and 50 is neutral.
Detail explanation can be reviewed here at CNNMoney.
The latest number on Fear & Greed Index can be read here.