There is one chart to particularly monitore for assessing the health of the market at a glance : the Bull Score Index.

It is an index that aggregates several key market metrics and converts them into a single score.

After a full market reset phase between December and February, during which the Bull Score fell to 0, market dynamics now appear to be improving.

Today, the index has returned to neutral territory with a score of 40. A score between 40 and 60 is generally considered neutral.

This suggests that, at current market valuations, more and more investors are starting to see value in gaining exposure again.

In other words, it may indicate that the end of the bear market is getting closer.

That said, this is not a tool designed to time the market.

However, historically, when the market entered a deep bear regime (score below 30), those periods often represented interesting entry opportunities.

We can therefore consider that we may now be entering a regime where implementing an exposure strategy start to makes sense, while still remaining cautious given the current tensions affecting global markets.

Written by Darkfost