# Macro Sentiment Index

The **Macro Sentiment Index (MSI)** is a multi-asset, rules-based indicator designed to quantify global market risk appetite by aggregating signals from a diversified basket of financial instruments across equities, fixed income, commodities, currencies, volatility, and macroeconomic data.

Developed under the **CandelaCharts** framework, MSI transforms complex intermarket dynamics into a single, interpretable sentiment score. It reflects the collective behavior of institutional and retail investors, central bank policies, liquidity conditions, and macroeconomic trends.

Rather than relying on a single data source, the index combines **over 30 components** grouped into five core categories:

* Risk-On Assets
* Risk-Off / Defensive Assets
* Macro & Interest Rate Indicators
* Central Bank & Policy Proxies
* Sentiment Ratios & Cross-Asset Signals

Each component is standardized using z-score normalization over a user-defined lookback period, weighted based on empirical significance, and aggregated into a **composite sentiment score**.

The final output oscillates around a neutral baseline (0), with positive values indicating **risk-on** conditions and negative values signaling **risk-off** sentiment.