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 -8.18 as 11% of traders are long. Yesterday the ratio was -8.03; 11% of open positions were long. Long positions are 6.4% lower than yesterday and 10.1% below levels seen last week. Short positions are 4.7% lower than yesterday and 0.2% above levels seen last week. Open interest is 4.9% lower than yesterday and 5.0% 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 further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.