S&P 500 Outlook Turns Bullish as Crowds Sell Rally

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US 500: Retail trader data shows 23.3% of traders are net-long with the ratio of traders short to long at 3.29 to 1. The number of traders net-long is 7.5% lower than yesterday and 18.8% lower from last week, while the number of traders net-short is 3.5% higher than yesterday and 4.1% higher 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.