S&P 500 Trading Bias Now Neutral
Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.
US 500: Retail trader data shows 14.1% of traders are net-long with the ratio of traders short to long at 6.09 to 1. The number of traders net-long is 3.7% higher than yesterday and 2.0% higher from last week, while the number of traders net-short is 2.9% higher than yesterday and 8.3% 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. 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.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
Follow him on Twitter at @CVecchioFX
To be added to Christopher's e-mail distribution list, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.