Reluctant Bulls

By | July 24, 2016

Although the market needs a rest, sentiment for the S&P 500 Index (SPX) on the Twitter stream continues to show positive signs. For the past several weeks, daily sentiment has printed almost all positive numbers. 7 day momentum and sentiment finally made a decent break above bear market overbought levels. This indicates that traders and investors are acknowledging that the bull market is back… if somewhat reluctantly.

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From an individual stock perspective the number of bullish stocks on Twitter is still being constrained by bear market levels, however the stocks showing bullishness come from a wide range of industries. You can see the bullish list here. One positive note is that if the market does rally there are still a lot of stocks that aren’t being widely bought yet. They can provide fuel for the next move higher.

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Support and resistance gleaned from the Twitter stream for SPX still shows strong support at 2135 and 2100. Traders are targeting 2200 as resistance.

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Conclusion

Market participants are slowly turning into bulls, but aren’t extremely bullish on a large number of individual stocks. I suspect they’re waiting for the next dip to get aggressive. Likely support for a dip is between 2135 and 2100 on SPX.

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