S&P 500 Likely to Press to Fresh Highs
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US 500: Retail trader data shows 15.2% of traders are net-long with the ratio of traders short to long at 5.59 to 1. The number of traders net-long is 11.6% lower than yesterday and 28.5% lower from last week, while the number of traders net-short is 6.8% higher than yesterday and 17.9% 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 Positioning Pulls Back Sharply, High Risk of Reversal
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