S&P 500 Looks Set to Test Fresh Peaks
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SPX500 –Retail CFD speculators continue selling into SPX500 rallies, and a contrarian view of crowd sentiment leaves us in favor of a move towards fresh record peaks.
Trade Implications SPX500 – The SPX500 tracks the fair value of the S&P 500 futures price, and a look at the chart above shows that traders had remained consistently net-short the contract until it recently bottomed near $1740. The fact that the crowd has once again sold aggressively serves as contrarian signal in favor of continued stock market gains. Only a material shift in positions would shake our bias; our Strategist highlights important support at $1820.30 which may contain any short-term pullbacks.
--- 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.