SPX500 Sentiment Warns of Further Losses
SPX500 –A substantial swing in retail CFD speculator sentiment warns that the SPX500 may have set an important short-term top, and indeed we’ll watch for fresh confirmation in the coming days of trading.
Trade Implications – Our retail sentiment data shows that the number of orders long SPX500 have surged 87 percent since last week, while short orders are down 50 percent in the same stretch. There remain 2.8 traders short SPX500 for every one that is short, and as such it is difficult to take a strongly bearish trading bias. Yet the sentiment swing seems substantial, and we’ll watch for further breakdown to give further conviction in our calls for continued weakness.
--- 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.