Lack of Optimism | SPX

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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.

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Price targets from traders on Twitter are lacking optimism as well. Almost no one is calling for higher prices.

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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.

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Sector sentiment is mixed. Defensive sectors are showing strength along with most of the leading sectors.

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Conclusion

Market participants aren’t too excited about higher prices. They seem to be waiting for a reason to get bullish.

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Source: Lack of Optimism

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