This rally lacks enthusiasm from traders and investors on Twitter. Sentiment for the S&P 500 Index (SPX) didn’t move higher as the market finally jumped on Friday. The good news for the bulls is that sentiment held its confirming trend line (the bottom of the triangle).
Another sign that enthusiasm is lacking comes from the number of bullish stocks on the Twitter stream. It isn’t moving up with the market. Breadth is ok, but only because no one dares to short as evidenced by a decline in the number of bearish stocks.
Price targets for SPX show everyone looking at 2600. There are virtually no tweets at any other level with the exception of observations of current prices. It’s as if everyone sees 2600 as inevitable, but waiting to see what happens afterward.
The market is moving higher without enthusiasm from market participants. Sentiment is lackluster, the bullish count is falling, and price targets are all calling for 2600 on SPX. Without enthusiasm, I suspect we’ll get dip once SPX gets close to 2600. That dip should be larger than we’ve seen in a while.