Net Bullish Sentiment vs. S&P 500 Index Investor sentiment has rebounded sharply since April’s market turmoil, buoyed by trade-related optimism, but it has not reached the excessive bullishness that usually signals a market peak. Image: Real Investment Advice
Different Market Sentiment Indicators Market sentiment indicators reflect a risk-on environment, with investors showing increased confidence and a preference for higher-risk assets. Image: Goldman Sachs Global Investment Research
Investor Sentiment – U.S. Market Greed/Fear Index With a reading of 78.81, the Market Greed/Fear Index indicates extreme greed in the U.S. stock market, reflecting a period of excessive optimism and risk-taking among market participants. Image: Real Investment Advice
U.S. Equity Sentiment Indicator – Equity Positioning A reading of 0.0 on the Goldman Sachs’ U.S. Equity Sentiment Indicator signals neutral sentiment, which—historically—has often been followed by positive S&P 500 returns in the subsequent month. Image: Goldman Sachs Global Investment Research
Fear & Greed Index – Investor Sentiment A Fear & Greed Index reading of 75 indicates strong bullish sentiment and optimism but also warns that the U.S. stock market may be poised for a pullback or consolidation. Image: Cable News Network
Combined AAII & II Sentiment So far, the combined readings from the American Association of Individual Investors (AAII) and Investors Intelligence (II) indicate a bullish outlook, reflecting optimism and confidence among market participants. Image: Topdown Charts
Average Percentile of Sentiment Indicators The post-Liberation Day environment reflects a strong rebound in investor confidence and a more bullish market stance, underpinned by easing tariff fears, trade deal progress, and supportive economic and technical factors. Image: Goldman Sachs Global Investment Research
NAAIM Exposure Index – Investor Sentiment The NAAIM Exposure Index, currently at 86.28, signals that active investment managers remain confident and heavily invested in U.S. equities. The National Association of Active Investment Managers Exposure Index represents the two-week moving average exposure to U.S. equity markets reported by NAAIM members. Image: NAAIM
Market Sentiment – Levkovich Index The Levkovich Index, or Panic/Euphoria Model, is currently at “euphoria,” indicating strong investor optimism. This often serves as a contrarian signal that equities may face downward pressure over the next 12 months. Image: Yahoo Finance
Sentiment Indicator and Stock Positioning A reading of 0.0 on the Goldman Sachs’ U.S. Equity Sentiment Indicator indicates neutral sentiment, which—based on historical patterns—is often followed by positive S&P 500 returns in the following month. Image: Goldman Sachs Global Investment Research
Sentiment – Risk Appetite and Expected U.S. Equity Market Performance For the first time since January 2025, U.S. equity investors’ risk appetite turned positive in July, fueled by stronger confidence in both fundamentals and the macroeconomic landscape. Image: S&P Global Market Intelligence