Momentum and sentiment for the S&P 500 Index (SPX) is slowly turning back to bullish. It’s been a tough road, but it looks like market participants are starting to get comfortable in the current range. 7 day momentum is holding its confirming uptrend line and has now put in a higher high…even if it’s barely above zero. It’s a small positive, but encouraging if it can hold.

SPX paused for a couple of days just below major resistance at 2040 then blasted through it and the next level at 2060. It is now consolidating above both new support lines. A consolidation back to the 2040 area would be healthy as long as it holds.

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Breadth is slowly ticking up due to the number of bullish stocks rising…finally. Now we want to see the number of bearish stocks fall.

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Conclusion

Overall sentiment for the market is looking better. We’re not out of the woods yet, but with 7 day momentum back above zero, SPX above major support, and the number of bullish stocks starting to rise we’ve got a good start. The odds are tilting back in favor of the bulls.