S&P 500 Remains Primed For Gains until this Changes
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SPX500 – Retail traders remain extremely short the SPX500, which tracks the fair value of the S&P 500 futures contract. A contrarian view of crowd sentiment leaves us in favor of further record highs.
Trade Implications SPX500 – As we noted last week, traders have remained short the SPX500 since the index set an important low near the 1750 mark. There are an impressive 8 open positions short for every 1 long, and such heavily one-sided sentiment leaves the uptrend intact. Price and Time studies nonetheless warn a convergence of key cycles warns of a potential S&P reversal, and any signs of a potential turnaround should be taken seriously.
See next currency section: EURCHF - Euro/Swiss Franc Positions at Record Long - Where's the SNB?
--- 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.