S&P 500 Looks at Risk of Turnaround
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SPX500 - The ratio of long to short positions in the SPX500 stands at -3.94 as 20% of traders are long. Yesterday the ratio was -4.29; 19% of open positions were long. Long positions are 8.2% higher than yesterday and 74.6% above levels seen last week. Short positions are 0.7% lower than yesterday and 15.9% below levels seen last week. Open interest is 1.0% higher than yesterday and 9.4% 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 less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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