S&P 500 Rallies Look Safe For Now
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SPX500 –Retail CFD speculators continue selling into SPX500 strength. A contrarian view of crowd sentiment favors a test of 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. We’ll continue to watch for fresh record peaks as crowds sell. Our strategist nonetheless warns that a failure near key levels may confirm an important short-term top in high-flying stock markets.
--- 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.