SPX500 Shows Signs of Turn, But We Aren’t Selling Yet
SPX500 –Retail CFD speculators remain aggressively net-short the SPX500 contract as it trades near record-highs, and we see little choice but to maintain our bullish contrarian trading forecast.
Trade Implications – Our retail sentiment data shows that the number of orders short SPX500 outnumber those long by a massive 5.4 to 1. It’s certainly worth noting that long interest is up approximately 40 percent since last week, while short interest is down 17 percent.
The reversal in sentiment might be early warning of a turn. But as we say with Gold prices, major turning points are only clear in hindsight. We see little choice but to remain bullish SPX500 until a much larger turn in sentiment.
--- 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.