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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX