Risks to S&P 500 Become Too Great to Ignore
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SPX500 – Retail CFD speculators remain heavily short the SPX500, which tracks the fair value of S&P 500 futures. Yet a material drop in short interest warns that the trend is near exhaustion.
Trade Implications SPX500 – It’s been a fool’s errand to call for an important breakdown in high-flying equity markets, but we see important evidence that it’s time to be skeptical of equity market strength. The fact that retail positioning has scaled back dramatically on the SPX500 adds further evidence, and a break below $1948 would help confirm that a potentially significant top is in place.
See next currency section: EURJPY - Euro Breakdown versus Yen Warns Against Complacency
--- 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.