S&P 500 at Little Risk of Major Turn Lower
SPX500 –Retail speculators remain very net-short the SPX500, which tracks the fair value of the S&P E-mini futures price. A contrarian view of crowd sentiment favors further S&P 500 gains.
Trade Implications SPX 500– We wrote last week that stock markets were at a potentially pivotal turning point, and the fact that they’ve now turned higher suggests bulls remain in control. We’ll need to see a much larger shift in crowd sentiment and price before turning bearish on the S&P 500.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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