S&P 500 Has Rallied – How Much Further Can it Go?
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US 500: Retail trader data shows 21.8% of traders are net-long with the ratio of traders short to long at 3.58 to 1. The number of traders net-long is 8.8% higher than yesterday and 6.0% lower from last week, while the number of traders net-short is 4.4% higher than yesterday and 3.2% 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. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed US 500 trading bias.
See next article in this week’s report: EURUSD - Big Shift in Trader Sentiment Warns Euro May have Turned
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