S&P 500 Outlook Hinges on Crowd’s Next Moves
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SPX500 –Retail speculators remain heavily short the SPX500 contract, which tracks the fair value of S&P 500 E-mini Futures. As long as crowds remain short, we favor further upside.
Trade Implications SPX 500– Last week we warned that our data flashed a major warning sign on the S&P 500 as we saw early sign of a major shift in crowd sentiment.
Since then crowds have mostly remained neutral, and we don’t yet have enough conviction to call for a bigger S&P sell-off. When that happens, however, be sure that we will update our views. Receive said updates via my e-mail distribution list through this link.
--- 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.