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David Becker

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3 Sentiment Indicators to Guide You Through Today’s Market

Market sentiment is the crowd psychology of market participants and can help give investors a clue of the future direction of a market. With the S&P 500 index hitting all-time highs, investors should pay attention to sentiment indicators to see if the current outlook is too rosy. Here are three sentiment indicators that will help guide you through the current market environment.

Seasonality of Oil Services

By comparing the returns of a stock or sector to a major index, an investor can determine if the stock or sector actually outperformed or underperformed the broader market during a specific period. By doing this relative analysis, an investor removes any seasonal influence a major average has on the stock or the sector.