Breadth Declining

By | November 12, 2017

Breadth calculated between the most bullish and bearish stocks on Twitter is declining. The culprit is the count of bearish stocks. It’s slowly creeping up even as the market rallies.   Sentiment for the S&P 500 Index (SPX) is bouncing between extreme optimism and neutral. The behavior is similar to the rally from November 2016 […]

Lack of Enthusiasm

By | October 22, 2017

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 […]

Sideways Consolidation

By | October 15, 2017

The S&P 500 Index (SPX) is consolidating in a sideways range. As SPX consolidates, sentiment from the Twitter stream is painting a triangle. The break of the triangle will point the next direction in the market. If it breaks to the downside, we’ll probably need a small dip before the market can continue upward. A break […]


By | September 17, 2017

Sector sentiment is again warning about a short term top with an overbought signal caused by all sectors showing positive readings. The last time this happened was late July and early August. A short term top followed as expected. At the least, we should expect some mild consolidation to clear the overbought reading.   Another […]

Cracks in the Dam

By | August 6, 2017

Two weeks ago, I mentioned that sector sentiment calculated from the Twitter stream was overbought. When this occurs a short term top is usually in place within a few weeks (almost always in one week). When it stretches to two weeks, sector sentiment stays overbought during the period. We’ve now gone two full weeks from […]

Market Overbought

By | July 23, 2017

Last week, sector sentiment gleaned from the Twitter stream had every sector positive. When this occurs a short term market top materializes usually within the following week. Once in a while, the sectors will paint another week with all of them in positive territory, then the top comes. Basically, when every sector is being bought […]