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.
--- Written by Christopher Vecchio, Currency Strategist
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