S&P 500 Remains Likely to Hit Further Record Highs
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US 500: Retail trader data shows 18.6% of traders are net-long with the ratio of traders short to long at 4.37 to 1. The number of traders net-long is 10.9% higher than yesterday and 19.6% higher from last week, while the number of traders net-short is 1.0% lower than yesterday and 7.8% 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.
See next article in this week’s report: EURUSD - Euro Expected to Rally Further versus Downtrodden US Dollar
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.