Market sentiment is also called "investor sentiment" and is not always based on fundamentals. It is important to day traders and technical analysts that use technical indicators to measure and profit from the short-term price changes often caused by investors' attitudes toward a security. Market sentiment is also important to contrarian investors that like to trade in the opposite direction of the prevailing sentiment. For example, if everyone is buying, a contrarian would sell.
What is a bull and bear market?
A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, currencies and commodities.
What does it mean to be bullish or bearish?
Bullish investors believe stocks are going up. ... Simply put, "bullish" means that an investor believes that a stock or the overall market will go higher, and "bearish" means that an investor believes a stock will go down, or underperform.
 is the general prevailing attitude of investors as to anticipated price development in a market. ...)
By — Don Quixote