S&P 500 Forecast Shifts Sharply as Traders Change Direction
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US 500: Retail trader data shows 32.6% of traders are net-long with the ratio of traders short to long at 2.07 to 1. The number of traders net-long is 1.7% lower than yesterday and 40.8% higher from last week, while the number of traders net-short is 0.4% lower than yesterday and 14.9% 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 more net-short than yesterday but less 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 - Euro Traders Once Again Sell - We Prefer to Buy
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