NAAIM Exposure Index

The NAAIM Exposure Index comes from the National Association of Active Investment Managers. Each week, member managers report how much of their clients' money is in US stocks, from heavily short to leveraged long. The average becomes the index.

Traders read it as a sentiment gauge. When managers are piled all-in, there are fewer buyers left to push prices higher; when they have fled, the market may have room to recover. Like most sentiment tools, it is better at spotting extremes than at timing turns.