S&P 500 Hesitates, but Further Gains Seem Likely
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SPX500 – The trading crowd remains very heavily short the SPX500 contract as it trades into fresh record highs. Until we see an important turn in sentiment we’ll remain firmly in favor of stock market gains.
Trade Implications SPX500 – Traders have remained short the SPX500, which tracks the fair value of S&P 500 futures, since the index set an important low near the 1750 mark. Short positions outnumber longs by a substantial 6 to 1, and traders show little sign of wavering. Our Senior Market Strategist warns that stocks could set a secondary top next week, but we won’t turn bearish until we see a material shift in trader positions.
See next currency section: NZDUSD - New Zealand Dollar May Trade to $0.8050
--- 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.