Our Twitter sentiment indicator for the S&P 500 Index (SPX) recorded its highest print ever today. It came in at +36. The volume and intensity of tweets were quit low, but we suspect that was a result of the very narrow range. The general tone of the tweets were somewhat bored and focused more on observing higher prices rather than all out excitement.
We did see a lot of bearish tweets today, but they were somewhat subdued in their tone. Resignation was a common theme as was disbelief. It appears as if many of the bears have finally thrown in the towel.
Last September we saw a string of +30 days as the market was making a short term top. Over the past week we’ve now had two +30 days. We’re not predicting at top, however, large prints like today are one of the things that put in place the beginnings of a negative divergence. It will be interesting to see how long the Twitter stream can maintain a high level of bullishness.