S&P 500 Trend May Continue Lower
US 500: Retail trader data shows 19.8% of traders are net-long with the ratio of traders short to long at 4.05 to 1. The number of traders net-long is 1.3% higher than yesterday and 10.4% higher from last week, while the number of traders net-short is 3.2% lower than yesterday and 4.9% 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.