S&P 500 Remains a Buy until this Changes
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SPX500 - The ratio of long to short positions in the SPX500 stands at -7.09 as 12% of traders are long. Yesterday the ratio was -6.72; 13% of open positions were long. Long positions are 3.1% lower than yesterday and 31.3% below levels seen last week. Short positions are 2.3% higher than yesterday and 16.3% above levels seen last week. Open interest is 1.6% higher than yesterday and 6.2% 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 and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
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