S&P 500 Remains a Buy until this Changes
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US 500: Retail trader data shows 15.4% of traders are net-long with the ratio of traders short to long at 5.51 to 1. The number of traders net-long is 9.1% lower than yesterday and 5.5% lower from last week, while the number of traders net-short is 2.1% higher than yesterday and 3.3% 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.
See next article in this week’s report: EURUSD - Euro Likely to Hit Further Highs until this Changes
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.