US S&P 500 may Rally into Highs
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US S&P 500– The ratio of long to short positions in the SPX500 stands at -4.21 as 19% of traders are long. Yesterday the ratio was -3.95; 20% of open positions were long. Long positions are 3.2% lower than yesterday and 19.1% below levels seen last week. Short positions are 3.1% higher than yesterday and 4.4% above levels seen last week.
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 further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.