IMX is a behavior-based index created by TD Ameritrade. It uses data from one of the largest pools of American retail investors to provide insights into how bullish investors are about the US market.
Rather than offering opinion-based surveys, IMX is based on behavior and when combined with surveys, it offers a complete picture of retail investor sentiment, claimed the company.
The index value is calculated based on a proprietary formula in which the holdings and positions of a statistically significant sample of accounts are evaluated to arrive at individual scores. The median of the individual scores represents the IMX.
TD Ameritrade trader group senior vice president Steve Quirk said, "The purpose of the Investor Movement Index is to harness our vast amount of retail client behavior data to show, over time, how this group reacts to market events."
