Another Week — Same Story

By | September 18, 2016

Not much has changed from last week regarding sentiment calculated from Twitter for the stock market. 7 day momentum is still compressing between a bull market oversold level and a confirming downtrend line. When one of these lines break it should point the direction of the market for the next few weeks.

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The number of bullish stocks is still well above bull market levels. As long as it holds, there is no threat to the intermediate term up trend. The bearish count fell slightly which is a positive as it suggests short sellers are taking profit.

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Support and resistance levels gleaned from Twitter for the S&P 500 Index (SPX) still shows 2200 as a big resistance level. 2150 was added as resistance this week so the bulls will have to push above it before a clear run to 2200 can begin. Below the market, 2120 held on several occasions this past week and garnered the most chatter on Twitter. This makes it a must hold level or it’s likely we’ll see a fast slide lower. 2100 and 2150 are the next levels of support.

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Conclusion

We’re still watching the triangle being painted by 7 day momentum. It should point the direction of the market when the triangle is broken. If the number of bullish stocks falls below its bullish oversold level it will be a threat to the intermediate term trend.

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