Quick S&P 500 Update

Here’s a quick update to Twitter sentiment for the S&P 500 Index (SPX). 7 day momentum is barely holding its confirming uptrend line. It looks like it’s time for some short term consolidation. I’d like to see 7 day momentum hold above its last dip at -.10. That will indicate the bulls aren’t jumping ship at the first sign of weakness. You can follow the daily chart here.

Breadth continues to move up, but like 7 day momentum it’s taking a pause. The most important thing I’m watching for on this chart is a decline in the number of bearish stocks. That would signal that market participants are picking up a broad base of stocks again. The daily breadth chart is here.

Support and resistance levels generated from the Twitter stream are basically the same as the last several weeks. However, the range is moving up a bit. 2040 and 2060 on SPX are fairly critical support levels that the bulls want to see hold.

Conclusion

Looks like we’re finally going to get some consolidation. 7 day momentum needs to hold above its previous low and SPX needs to hold above 2040 to keep the bullish trend intact.