SPX500 Forecast to Rally Further as Retail Traders Sell
SPX500 –Retail CFD speculators continue selling aggressively into SPX500 strength as it trades to multi-year highs, and we see scope for continued strength.
Trade Implications – Our retail sentiment data shows that short positions on the SPX500 contract have grown a further 11 percent since last week, and there are currently over 7 traders short for every one long. Given such clearly one-sided positioning, we see little choice but to favor further SPX500 strength.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.