S&P 500 Looks Primed for Gains until this Changes
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SPX500 – Retail crowds remain heavily short the SPX500 contract, and a contrarian view of herd sentiment leaves us firmly in favor of further S&P gains.
Trade Implications SPX500 – Traders have remained net-short the SPX500 since the S&P 500 set an important low near the 1750 mark. It’s worth noting that short interest has actually fallen since last week, but until we see a sustained reversal in crowd positions the S&P rally looks intact.
See next currency section: EURCHF - Euro Very Likely to Test 1.20 versus Swiss Franc
--- 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.