Breadth from the Twitter stream is painting a clear pattern of accumulation similar to the October/November 2014 rally. The number of bullish stocks is now rising rapidly and the bearish stocks are falling. This suggests that traders are once again looking for buying opportunities. Sentiment for the S&P 500 Index (SPX) also continues to improve. […]
The Nasdaq 100 ETF (QQQ) has painted two downward initiation thrusts over the past month. Both of them came from sentiment highs on 7 day momentum. This is an unusual situation. Generally 7 day momentum declines as traders take profit on positions moving into a top. Then as the top is being made in price […]
Here’s a few things I find interesting about the current market. First, the Nasdaq 100 (NDX or QQQ) made a significant short term low about three months ago. Since that time it has retraced that low back to new highs with Twitter momentum confirming the move. Over that same time period the stocks that were […]
Here’s a quick update on the indexes.
Earlier in the week I mentioned that there is a bit of chasing going on in the indexes. When this happens it usually means larger range days and increased instability. In addition, price can change direction very quickly. When market participants are chasing it’s a good time to use caution and/or avoid new trades. I […]
I posted over the weekend that it was make or break time for the indexes. It appears that it might be break time. All of the indexes with the exception of small caps (RUT or IWM) issued a consolidation warning at the close today. A consolidation warning occurs when Twitter or StockTwits momentum breaks its […]
Here’s an update on the indexes, sectors, and Twitter breadth…with little commentary. The overall picture suggests the market is still holding up, but Twitter and StockTwits sentiment is close to breaking down. It’s make or break time for the end of the year. The sectors are looking healthy and suggests we could see a drift […]
Below are some charts I posted on Twitter and StockTwits during the past week.
Technology stocks (NDX and QQQ) had a bad day today and it showed up as a big negative divergence in sentiment strength scores on Twitter. Although small caps (IWM) closed positive today they had a rough day on the stream. Meanwhile the S&P 500 index (SPX and SPY) just keep on climbing with strong support […]
On 9/28 our social media indicators were warning of lower prices for the indexes. Today they are trying to clear those warnings. Here are the updated charts. Small caps (IWM) were the first to warn and the first to break back above the confirming down trend line. Bargain hunting and short covering have helped small […]