Recent Dip Scares Away S&P500 Bears
SPX500 - The ratio of long to short positions in the SPX500 stands at -1.95 as 34% of traders are long. Yesterday the ratio was -3.17; 24% of open positions were long. Long positions are 37.5% higher than yesterday and 58.5% above levels seen last week. Short positions are 15.6% lower than yesterday and 18.6% below levels seen last week. Open interest is 2.9% lower than yesterday and 3.3% below its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the SPX500 may continue higher. The trading crowd has grown less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
--- Written by Christopher Vecchio, Currency Analyst
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