Short Term Top Ahead

By | February 20, 2017

Last week, sector sentiment from the Twitter stream gave a warning. It is showing an overbought condition where every sector has positive sentiment. When this has occurred in the past, it has almost always been followed by a short term top within a few days.   At Downside Hedge I highlighted another indicator that has a […]

Healthy Rally

By | January 29, 2017

A few weeks ago sentiment for the S&P 500 index (SPX) calculated from the twitter stream broke out higher from a triangle pattern. I mentioned that this usually indicates higher prices ahead. It took some time, but the market finally responded. Now we’re watching the confirming uptrend in sentiment. If it breaks expect a larger […]

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. Unfortunately, traders are tweeting 2300 on […]

Not Much Hope at a Critical Point

By | January 8, 2017

Over the past several weeks, sentiment for the S&P 500 Index (SPX) has been slowly deteriorating as the market traded sideways to down. This week the market turned back up, and with it sentiment. This has painted a triangle pattern in 7 day momentum. When this occurs it creates an inflection point where the market picks […]

Support and Resistance

By | December 18, 2016

Posts from now through the holidays will be light… too much fun to be had, but we’ll try to at least update the support and resistance chart for the S&P 500 Index (SPX). Right now there is strong resistance at 2300. A cluster of support lies between 2240 and 2250. Below that is 2200. You […]

Rotation Amid Overbought Conditions

By | December 4, 2016
Most Bullish Stocks on Twitter

Over the past three weeks (since the US election) we’ve observed a major rotation from safety into leading sectors by watching the bullish and bearish lists. Take a look at the bullish stocks on Twitter over the past 3 weeks and you’ll notice financials, consumer products, retail, and energy dominating the list. Now lets look at the list of […]