DEFINITION of Bull/Bear Ratio

The bull/bear ratio is a market-sentiment indicator published weekly by Investor's Intelligence that uses information polled directly from market professionals. Information is taken from investment advisors who work directly with the general investing public to help them with financial planning and investment portfolios. This index reflects the sentiments of these advisors who deal daily within the financial markets. It reflects how these professionals are feeling about the market, and how they are likely advising their clients to invest based on those feelings. A reading above "1" means more advisors are bulling about the market, meaning they think it will go up. A reading below "1" means a bigger portion of advisors are bearish and think the market will pull back in the near future.

Formula for calculating the Bull/Bear Ratio.

BREAKING DOWN Bull/Bear Ratio

In order to form the bull/bear ratio, investment advisors are polled weekly by Investor's Intelligence. Investor's Intelligence is a service that publishes daily market indicators and other things people can use to day trade. The bull/bear ratio is a long-standing indicator that shows shifting sentiments of market professionals such as financial advisors. A financial advisor's sentiment is going to affect the way they communicate with their clients and may even switch the way they advise their clients to invest, affecting the movement of the market. As the bull/bear ratio rises and falls, it indicates the portion of the investment community that is bullish- or expecting the market to go up — versus the portion that is bearish — or expects the market to fall.