It looks like the most important thing to watch next week will be the range on the S&P 500 Index (SPX) between 1810 and 1940. Price targets from traders tweets are starting to create clear support and resistance at those levels. If we get a break, either up or down, expect a strong move in that direction. The only caveat is the cluster of support between 1780 and 1800 could help the market catch, so if you’re a bear don’t get too excited unless 1780 is broken to the downside.
7 day momentum from Twitter for SPX is trying to break its downtrend line. This is a slightly positive sign, but is tempered by the fact that it is still below zero and there is no positive divergence. I’d be cautious until those two conditions have been cleared.
Another small positive sign is breadth from the Twitter stream is ticking up due to the number of bearish stocks falling this week. Bulls want to see this trend continue.
Be patient and watch the range between 1810 and 1940 on SPX. When it breaks we should get a strong move in the same direction.