Last week we mentioned that it was time for some consolidation. This week it looks like everyone is waiting to see what happens. The first sign of waiting and watching comes from support and resistance levels gleaned from Twitter for the S&P 500 Index (SPX). There aren’t many tweets for prices above or below about 2500.
Sentiment is decreasing as the market stalls. This is a normal condition that should result in the market resuming higher after 7 day sentiment hits the zero line or dips a bit lower into the oversold area. The lack of enthusiasm is another sign of market participants observing rather than hoping for higher prices.
Another sign of waiting comes from the number of bullish stocks on the Twitter stream. We’re not seeing a big increase in bullishness. However, we are seeing a decrease in the number of bearish stocks. This suggests that the market should rally once the current consolidation ends.
Everyone is waiting for a clear move in the markets. The indicators from Twitter suggest the move should be higher.