The rally for the S&P 500 Index (SPX) that started in earnest on July 10th isn’t inspiring traders on Twitter. The daily sentiment reading on the 10th was a healthy +20, but since that time the readings have been at moderate levels in the low teens. 7 Day momentum has turned up from an oversold level, but the tepid daily readings have kept 7 day sentiment well away from becoming overbought. Overall it paints a picture of market participants waiting for a reason to get bullish.
Price targets from traders on Twitter are lacking optimism as well. Almost no one is calling for higher prices.
Breadth calculated between bullish and bearish stocks is currently falling due to the number of bearish stocks rising. If the trend continues it will be a warning that market participants are becoming bearish.
Sector sentiment is mixed. Defensive sectors are showing strength along with most of the leading sectors.
Market participants aren’t too excited about higher prices. They seem to be waiting for a reason to get bullish.
Source: Lack of Optimism