The situation which the majority of investors perceive the broader market to be in: an uptrend (a bullish bias) or a downtrend (a bearish bias). This represents the overall dominating opinion of the majority of the market participants, and explains the current actions of the market, as well as its future course of action. In general, there are three main types of sentiment with respect to forming opinions in the determination of a market price: (1) bullish, (2) bearish, or (3) plain confused. If the majority of the market seeks to sell a given stock(s), the market sentiment is deemed to be bearish. If the majority wants to buy that stock(s), the market sentiment is bullish. And when most market participants are uncertain of their momentary market action, the sentiment is thus confused or mixed. Technicians (chartists) measure market sentiment with breadth-of-market indicators.

It is also referred to as a market bias.