S&P 500 Remains a Buy until this Changes
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US 500: Retail trader data shows 25.3% of traders are net-long with the ratio of traders short to long at 2.95 to 1. The number of traders net-long is 22.5% lower than yesterday and 27.9% lower from last week, while the number of traders net-short is 1.9% higher than yesterday and 19.4% 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.
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