Market sentiment is the general consensus of investors and traders regarding the activity of the market and future movement of securities prices.
The market sentiment could be either bullish, bearish or neutral. It is very often influenced by the last price movements. Market sentiment is usually bullish after a rise in securities prices, whereas it is usually bearish after a decline in securities prices.
Market sentiment can be measured by technical and fundamental analysis indicators, market breadth data (advancing declining issues, advancing declining volume, 52-week new highs and lows), survey-based indicators...