Although the market needs a rest, sentiment for the S&P 500 Index (SPX) on the Twitter stream continues to show positive signs. For the past several weeks, daily sentiment has printed almost all positive numbers. 7 day momentum and sentiment finally made a decent break above bear market overbought levels. This indicates that traders and investors are acknowledging that the bull market is back… if somewhat reluctantly.
From an individual stock perspective the number of bullish stocks on Twitter is still being constrained by bear market levels, however the stocks showing bullishness come from a wide range of industries. You can see the bullish list here. One positive note is that if the market does rally there are still a lot of stocks that aren’t being widely bought yet. They can provide fuel for the next move higher.
Support and resistance gleaned from the Twitter stream for SPX still shows strong support at 2135 and 2100. Traders are targeting 2200 as resistance.
Market participants are slowly turning into bulls, but aren’t extremely bullish on a large number of individual stocks. I suspect they’re waiting for the next dip to get aggressive. Likely support for a dip is between 2135 and 2100 on SPX.