News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
S&P Remains a Buy, though Risk of Reversal has Grown

S&P Remains a Buy, though Risk of Reversal has Grown

David Rodriguez, Head of Product
S&P Remains a Buy, though Risk of Reversal has Grown

Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.

US 500: Retail trader data shows 20.1% of traders are net-long with the ratio of traders short to long at 3.98 to 1. The number of traders net-long is 7.7% higher than yesterday and 18.9% higher from last week, while the number of traders net-short is 2.2% lower than yesterday and 4.6% 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. Yet traders are less net-short than yesterday and compared with last week. Such early shifts can act as warning of a potential trend change, but we would realistically need to see a much larger change towards crowd buying before calling for a meaningful S&P 500 turn lower.

See next article in this week’s report:EURUSD - Euro Forecast to Continue Higher versus US Dollar until this Changes

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES