Breadth from the Twitter stream is painting a clear pattern of accumulation similar to the October/November 2014 rally. The number of bullish stocks is now rising rapidly and the bearish stocks are falling. This suggests that traders are once again looking for buying opportunities.

Sentiment for the S&P 500 Index (SPX) also continues to improve. It held the confirming uptrend line and moved higher over the past week even with the choppy market. Market participants are getting more comfortable with the idea of new highs.

Looking at the chart for the Nasdaq 100 (QQQ) there is a clear pattern of bearish sentiment turning bullish. It is consolidating at all time highs without serious damage to 7 day momentum. With the strong readings it will take quite a bit of price loss to break the current uptrend in 7 day momentum. This is an important line to watch going forward. If it breaks then we’re likely to suffer a more serious consolidation before the market can move higher. You can see the daily chart of Twitter sentiment for the Nasdaq 100 here.

Support and resistance levels gleaned from the Twitter stream for SPX show a clear line of resistance at 2100. As I expected, the market is pausing at that level. One other thing to notice on this chart is that traders aren’t tweeting price targets outside the daily range. This indicates indecision or waiting. A break higher will likely be associated with some chasing.

Sector sentiment is mostly positive. The two kinks are consumer staples continues to show strength and industrials can’t seem to get any momentum.

Conclusion

Sentiment from the Twitter stream is righting itself. Most of the readings suggest the market will break higher after some consolidation near the 2100 area.