The consolidation warning for the S&P 500 Index (SPX) based on Twitter momentum that was issued on 7/11/14 has been cleared as of the close on 8/14/14. Momentum has moved higher and broken above a down trend line that has been in place for two months. The break also comes after a positive divergence with price. This indicates that market participants were supporting the market as it fell into the last low. The odds now favor higher prices in the intermediate term.
Note: The events in Ukraine today could change investor behavior. Now is a time to read the streams carefully and determine if this event raises fear or is seen as an opportunity to buy.
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