Crowd psychology, typically a measurement of bullish or bearish attitudes among investors and traders. There is a definite "herd" effect in market sentiment where bullish or bearish sentiment, once it is strong enough, tends to feed on itself. For example, during a bear trend negative articles in the press are given front-page headline prominence while positive articles tend to be relegated to the middle pages and are largely ignored. One of the methods for determining whether sentiment is bullish or bearish is to study the movement of the market in response to breaking positive or negative information. When the market tends to ignore positives and over-emphasise negatives then you can be sure that sentiment is bearish.
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