Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
S&P 500 Likely to Hit Further Highs

S&P 500 Likely to Hit Further Highs

David Rodriguez, Head of Product

Share:

Why and how do we use the SSI in trading? View our video and download the free indicator here

US S&P 500– Retail traders remain aggressively short the SPX500, which tracks the US S&P 500, and a contrarian view of crowd sentiment suggests the S&P may trade higher. Indeed, our data shows traders have remained net-short the SPX500 since the S&P traded at 1,854 through mid-February. As long as traders continue to sell, we see little reason to change our bullish trading bias.

It is nonetheless important to note that total short interest has fallen substantially as the S&P has pulled back from highs. Our data shows 79 percent of total open orders are currently short the SPX500, but this is a notable change from the 91 percent seen through February. We will remain in favor of buying into S&P 500 strength until we see a much larger shift towards crowd buying in the SPX500.

See next currency section: EURUSD - Euro Remains a Buy until this Changes

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES