Lingering Doubt over the Strength of the S&P 500’s Rally a Bullish Backdrop
SPX500 –Retail CFD speculators remain heavily short the SPX500 contract, which tracks the fair value of S&P 500 futures. A contrarian view of crowd sentiment leaves us in favor of further gains.
Trade Implications SPX500 – The rebound in retail short positioning as the headline US stock index trades to fresh highs suggests that the broader rally isn’t finished yet. The broad disdain for the rally in and of itself is an indication that the public may be missing out, leaving potential buyers afoot.
--- Written by Christopher Vecchio, Currency Analyst
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