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Declining Open Interest Noted, but Crowd Remains Heavily Short SPX500

Declining Open Interest Noted, but Crowd Remains Heavily Short SPX500

Christopher Vecchio, CFA, Senior Strategist
Declining Open Interest Noted, but Crowd Remains Heavily Short SPX500

SPX500 - The ratio of long to short positions in the SPX500 stands at -4.70 as 18% of traders are long. Yesterday the ratio was -4.80; 17% of open positions were long. Long positions are 0.5% lower than yesterday and 25.9% below levels seen last week. Short positions are 2.4% lower than yesterday and 11.3% below levels seen last week. Open interest is 2.1% lower than yesterday and 21.1% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the SPX500 may continue higher. The trading crowd has grown less net-short from yesterday but further short since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.

Read more: Crowd Still Net-Short GBP/USD as YouGov Poll Shows Remain at 51%

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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