Investors Say Fade the Rally: StockTwits.com

NEW YORK (TheStreet) -- The major indices rallied Monday after a sharp two-day sell-off that had dragged the markets into negative territory for 2014. But investors on StockTwits.com weren't relieved.

$SPY to 200ma 1760s then stablizes, it wouldn't even be a "correction". run of the mill 6% pullback. so don't be too eager here

- _flipper_ (@_flipper_) Apr. 14 at 11:15 AM

Many remained bearish on the major indices despite Monday morning's broad based gains and returned momentum to high growth tech names. The S&P 500 gained 0.9% by noon and the Dow had climbed 0.8%. The hard-hit Nasdaq recovered more than 1%. However, sentiment on the ETF that tracks the S&P  (SPY) stood at 70% bearish, according to StockTwits' analytics. Sentiment on the ETFs that track the Nasdaq  (QQQ) and Dow (DIA) held at 58% bearish and 62% bearish, respectively.

After the slaughter last week, one up day has gotten a lot of bulls excited here. Fading the rally. $SPY $ES_F

- Market Owl (@MarketOwl) Apr. 14 at 11:09 AM

$QQQ oversold bounce may be start of a bull trap. could see this forming a H&S top.

- Captain Obvious (@Captain_Obvious) Apr. 14 at 10:45 AM

Investors said Citigroup's, $C, earnings beat held little information that was positive for the broader economy. The bank attributed a 1% decline in sales, in part, to reduced refinancing activity. However, non-performing loans dropped, enabling them to release more than half-a-billion in reserves.

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