US S&P 500 Looks at Danger of Turnaround
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US S&P 500– Retail CFD traders remain extremely net-short the SPX500, which tracks the fair value of the S&P E-mini futures contract, and a contrarian view of ‘crowd’ sentiment has kept us firmly bullish. Continued failure to break to fresh highs gives us pause, however. The S&P has now made two consecutive lower highs, and a third lower high would highlight danger of a turnaround.
It will be critical to watch how traders react to the S&P 500 near key highs—a major shift in retail trader sentiment may confirm a short-term price trend turnaround.
See next currency section: EURUSD - Signs of Danger - Has Euro Trend Turned?
--- Written by David Rodriguez, Senior Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.