📊 News Sentiment Index (20-Day Window)
There is elevated activity across the information pipeline, reflecting a clear shift in market psychology. The usual market stability has been disrupted, and speculation regarding future price behavior has increased significantly. This has introduced heightened tension among portfolio managers and market analysts, leading to a more defensive positioning across risk assets.
💥 Early February Liquidations
At the beginning of February, a substantial number of positions were liquidated. This liquidation cascade contributed to rising uncertainty and triggered an environment of extreme caution in the market. The impact of this event is clearly visible in both sentiment and price dynamics.
📉 Sentiment & Price Dynamics
News sentiment across multiple sources is distinctly bearish, with the sentiment index reaching approximately −25 points — the most negative reading in the available historical window. Price behavior confirms this deterioration: the market is trading at new local lows within the 20-day sentiment analysis window, meaning negative news flow is actively priced in.
🧊 Stabilization Signal
The current horizontal formation of the sentiment index at deeply negative levels suggests stabilization in the information flow rather than acceleration. Sentiment remains extremely bearish, but negative news intensity is no longer increasing.
📌 Prolonged horizontal negative sentiment typically supports consolidation, not immediate sharp declines.
📌 If
#sentiment does not deteriorate further, downside momentum may weaken despite pressure on prices.
📈 Recovery would likely require a positive information shock, such as:
• Constructive macroeconomic developments
• Improved monetary or liquidity expectations
• Shift in global risk sentiment from leading economies
🔒 Until such signals appear, the market is likely to remain range-bound or weak, with sentiment suppressing bullish expansion.
⚠️ This content is for informational and analytical purposes only and does not constitute financial advice.