Brutal Selloff Continues, Sparing Nobody: StockTwits

NEW YORK (TheStreet) -- The selloff continued today, sparing nobody. On StockTwits.com, bearish sentiment has clustered around the S&P 500 ETF (SPY).

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Another noteworthy development today was the low print in the StockTwits' General Sentiment indicator that I privately maintain, derived from in-house StockTwits data (Here's more info on how it is calculated). As of midnight last night, the indicator was at its lowest levels since I began tracking six months ago.

Each previous time we've pierced the 3.0 level, markets have bounced. Is this time different?

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Cashtaggers are starting to point out 'oversold' indications, too.

Small caps haven't been this oversold since Nov 2012. $IWM $TZA http://stks.co/e0Qvs

-- Ivaylo Ivanhoff (@ivanhoff) Apr. 11 at 12:58 PM

That often signals a high probability of a short-term bounce. But no indicator is a sure bet. The growing nervousness in equities is also now spilling into the bond market as interest rates are breaking nearly year-long support:

30-Year Treasury Bond Yield breaking long-term support at 3.5% $TYX $TLT $ZB_F http://stks.co/j0UYF

-- Tech Talk (@EquityClock) Apr. 11 at 01:04 PM

Perhaps investors and traders have gotten far too focused on the near term, watching ticks and headlines and overreacting every which way? @TodayTrader (Stevie Gomez, for those in the know) with his tongue planted firmly in cheek suggests perhaps we should all just chill out and eat a sandwhich (I'm paraphrasing).

OMG! OMG you guys! Stocks are collapsing right before our eyes! $QQQ #perspective http://stks.co/c0Qoq

-- TodayTrader (@TodayTrader) Apr. 11 at 02:07 PM

Follow me on StockTwits: @chicagosean

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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