Last week, we were looking for a break higher in 7 day momentum and sentiment to signal a resumption of the rally. We got that break and the S&P 500 Index (SPX) finally made a clear move above 2400. Unfortunately, most of the bullishness was observation of new highs and not excitement for even higher prices.
The move higher stopped right at the 2420 resistance level tweeted by traders. The next resistance area is 2450, but there aren’t many tweets calling for higher prices so it may be a slow slog higher.
Another drag on the market is the number of bearish stocks on the Twitter stream is rising. This isn’t a good sign when the market is at all time highs because it indicates a thinning market.
The market made new highs, but without much hope. Higher price targets are sparse, the count of bearish stocks is rising, and individual tweets don’t have a lot of enthusiasm for higher prices. It’s likely that any price gains will come sluggishly.