Bullish Sentiment on Twitter – But Resistance Just Above

By | January 15, 2017

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.

170115spx

Unfortunately, traders are tweeting 2300 on SPX as an upside target. This indicates the market only has another 25 points to rally before pausing.

170115spxSR

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.

170115breadth

Conclusion

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.

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