Last week our Twitter momentum indicator for the S&P 500 Index held up relatively well as the market sold off. The daily prints are mostly healthy readings as 7 day momentum works off its extreme over bought readings from the previous week. It is holding above the confirming uptrend line which indicates the market wants to break higher.
Another positive sign for the market is the list of stocks with the most support on the Twitter stream. Friday’s daily list showed a lot of recent leaders and also some beaten down stocks. This indicates investors are looking for value rather than selling out right.
Breadth calculated between the strongest and weakest stocks on Twitter is showing the same thing. Although the number of bullish stocks is falling to levels seen in January and last October, the number of bearish stocks isn’t rising. So a lot of short selling isn’t occurring at the moment. You can see the current breadth readings here.