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SPX500 – Retail CFD speculators remain extremely short the SPX500 contract, which tracks the fair value of S&P 500 futures. Until we see a much larger shift in sentiment, we’ll call for further S&P gains.
Trade Implications SPX500 – Last week we noted that an important shift in retail positions warned that an S&P 500 break below 1948 would set up a much larger correction. Of course, that never materialized, and we continue to marvel at the fact that equity markets seem almost “Unbreakable”.
Warning signs abound, but until we see more concrete signs of a correction we see little reason to go against the impressive uptrend.
See next currency section: EURJPY - Euro Gains Favored as it Holds Key Lows versus Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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