S&P 500 Likely to Continue onto Fresh Record Highs
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US 500: Retail trader data shows 16.3% of traders are net-long with the ratio of traders short to long at 5.15 to 1. The number of traders net-long is 10.8% lower than yesterday and 0.6% higher from last week, while the number of traders net-short is unchanged than yesterday and 0.9% 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 Traders Stop Selling - Watch the Next Move
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.