Sentiment for the S&P 500 Index (SPX) on the Twitter stream broke its triangle pattern to the upside. This suggests that this rally has more steam in it. Keep an eye on the confirming uptrend line from 7 day momentum. If it is broken then some consolidation will likely occur.
Unfortunately, traders are tweeting 2300 on SPX as an upside target. This indicates the market only has another 25 points to rally before pausing.
Breadth calculated between the most bullish stocks an Twitter and the most bearish is still holding up. The bearish count isn’t rising and the bullish count is falling slightly. This suggests a wait and see mode by traders.
Market participants expect higher prices, but traders are only looking up to 2300 on SPX. We’ll likely see a rally to 2300 that stalls before moving higher again.