SPX500 Trading Sentiment Points to Record Peaks
SPX500 –Forex markets have been exceedingly choppy as of late, but stock indices continue marching to the beat of their own drummer. Heavily one-sided retail sentiment warns the SPX500 may hit fresh peaks.
Trade Implications – Our retail sentiment data shows that the number of orders short the SPX500 contract has surged 41 percent since last week, while long orders have fallen by a similar 32 percent. Indeed, our sample shows that there are currently 5.8 traders short the SPX500 for every long. We see little choice but to favor fresh record highs.
--- 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.