What Is a Market Sentiment Index? (0–100)

A market sentiment index compresses "what traders are thinking right now" into a single 0–100 number. It is independent of price and flow — another lens on the market.

Where does it come from?

It aggregates bullish and bearish trader discussion on social media for a stock or the index, then maps it to 0–100. Low = pessimistic; high = optimistic.

How to read 0–100

• 0–35 — cold, mostly pessimistic.
• 36–65 — neutral, divided.
• 66–100 — hot, mostly optimistic (very high values often come with risk).

Why read it separately

• Divergence vs price — price at new highs while sentiment cools deserves attention.
• Divergence vs flow — inflow while sentiment turns cold can weaken the signal.
• It is "mood," not "money" — the two confirm each other.

Common mistakes

• Treating sentiment as a buy/sell signal (it is a reading).
• Using one platform as a proxy for the whole market.
• Ignoring divergence with flow and price.