Sentiment Switches Direction on Stocks
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US S&P 500– The ratio of long to short positions in the SPX500 stands at -2.62 as 28% of traders are long. Yesterday the ratio was -1.43; 41% of open positions were long. Long positions are 14.7% lower than yesterday and 41.2% above levels seen last week. Short positions are 57.0% higher than yesterday and 21.1% above levels seen last week. Open interest is 27.4% higher than yesterday and 21.7% above 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 further net-short from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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