Below is a chart with the stocks that have been able to maintain positive momentum on the Twitter stream over the past month (ending 5/20/14). These stocks have maintained a position in the most bullish / strongest list over several time frames from one week to one month. Notice Apple (AAPL) and Ford (F) have just passed the one month mark (no scores for two months and longer) while the other stocks on the list have maintained momentum for three months. This suggests that AAPL and F are recovering and trying to make a turn higher after an intermediate term decline.
Below are charts with the bearish intensity scores for the weakest stocks on Twitter over the last two weeks (ending 5/20/14).
Below is a chart of the stocks with the most support from the StockTwits community over the past month (ending 5/20/14).
Not much has changed over the past week. The market is still compressing in the range we’ve been watching. However, a bit of volatility was present with a trip to both the top and the bottom of the range. I’m still looking mostly at breadth for the most likely signs that the market will enter a correction or at least make a trip to the 200 day moving average. Our Sentiment indicator for the S&P 500 index (SPX) that reads the StockTwits stream is still on a consolidation warning and has made another lower high. Sentiment from the Twitter stream looks much the same, however it didn’t have a clear up trend so it couldn’t officially warn. This week it made a higher low and a higher high so we have good triangle in place to watch for hints to the direction SPX will break from the range. Currently the odds favor a break lower since smoothed sentiment has a negative divergence with price. Support and resistance levels gleaned from
Here are the strength scores for the stocks that had the most support from the Twitter stream over the past week.
Here are the strength scores for the stocks with the most support from the StockTwits community over the last week.
A buy signal was issued at the close today for MasterCard (MA) from the Twitter stream. This signal comes after a buy signal for Visa (V) on 5/7/14.
Today at the close a consolidation warning was issued for the Nasdaq 100 ETF (QQQ) from the Twitter stream. This follows the consolidation warning for the S&P 500 Index (SPX) from StockTwits last Friday.
Over the next couple of weeks the market will be forced to choose a direction. The S&P 500 Index (SPX) is being squeezed between its 50 day moving average near 1860 and its last peak near 1900. Each day that goes by the 50 dma will move higher and put more pressure on the index. The pressure will force SPX to either move higher or fail at its 50 dma so we should get a direction over the next few weeks. Coincidentally, support and resistance levels gleaned from the Twitter stream are compressing in the same range. There are a few scattered tweets down near 1850, but the majority are near 1860. Above the market the most tweeted level is near 1900. This tight range suggests that traders are watching closely for a break before committing themselves. Quantified messages from the StockTwits community issued a consolidation warning for SPX Friday at the close. Please note, this isn’t a prediction that the market will move lower, merely warning that sentiment and