Mood of the Market

What is mood of the market?

The Market Mood Index (MMI) is a reflection of the collective mood of the market, whether it’s bullish or bearish. The Market Mood Index is a metric that tracks the overall sentiment of the stock market. Investors and traders who participate in the market calculate it based on their opinions and emotions.

To conclude:

- PCR indicates the mood of the market. It does not indicate the exact point of market reversal.

- PCR is the ratio of total open interest of put options to the total open interest of call options. PCR can be above 1, below 1 or 1.

- PCR above 1 indicates a bearish mood and an opportunity to Buy Low.

- PCR below 1 indicates a bullish trend and an opportunity to Sell High.

- PCR of 1 indicates a neutral market.

- Do not consider PCR in isolation. Use it with other indicators.