Bullish Signs

By | August 7, 2016

The Twitter stream is finally being filled with bullishness from traders and investors tweeting about individual stocks and the S&P 500 Index (SPX). The tweets for SPX have shown enough bullishness during the last three minor consolidation periods to keep 7 day momentum and sentiment mostly above zero. This is healthy bull market behavior. Bull market consolidations usually see this indicator experience small dips below zero that are quickly recovered.

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The number of bullish stocks on Twitter has risen back to bull market levels. This indicates buying in a broad number of stocks. This should help support a further rally.

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On the slightly negative side, we have price target tweets for SPX. Traders are only expecting a move to 2200. There is very little hope for higher prices. As a result, we should see some selling and consolidation at that level.

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Conclusion

Bullishness is clearly back, but the market will likely consolidate once SPX reaches 2200.

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