S&P 500 Forecast Remains Bullish Until this Changes
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US 500: Retail trader data shows 29.0% of traders are net-long with the ratio of traders short to long at 2.44 to 1. The number of traders net-long is 7.0% lower than yesterday and 14.3% lower from last week, while the number of traders net-short is 5.9% lower than yesterday and 4.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger US 500-bullish contrarian trading bias.
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