Just a quick update this weekend. As the market pushes higher sentiment from the Twitter stream continues to diverge. We’ve got a good upward sloping confirming trend line in smoothed sentiment that if broken will warn of possible consolidation ahead. But as long as smoothed sentiment stays inside the triangle currently being painted or breaks above it odds favor higher prices.
Support and resistance didn’t change as traders have gone pretty quiet this summer. Support is at 1925 on the S&P 500 Index (SPX). Resistance is at 2000, but almost no one is talking about that level any more.
Sector sentiment is finally showing some weakness in Consumer Staples which suggests some of the rotation to safety is over. This is another positive for the market.
Overall, it’s the same story I’ve been telling for weeks so we can expect more marginal new highs followed by a period of chop.