S&P 500 Shows Signs of Weakness, but When’s the Big Turn?
SPX500 –Trading crowds have most recently bought into the SPX500, which tracks the fair value of the S&P 500 E-mini futures price, and the turn in sentiment points lower for stocks.
Trade Implications SPX 500– Our Senior Market Strategist argues that stock markets are at risk of a major turnaround, and indeed the recent shift in crowd sentiment supports calls for S&P 500 weakness. Of course this could very well be a “run of the mill” correction. What might change that?
Among other things, we think a larger bounce in the so-called “Fear Index” in the S&P 500 VIX could help cement the case for a turn. We might likewise wait for a larger turn in retail sentiment—follow along via my e-mail list for future updates on the SPX500 sentiment reading.
--- 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.