S&P 500 Trend May Reverse
US 500: Retail trader data shows 29.1% of traders are net-long with the ratio of traders short to long at 2.43 to 1. The number of traders net-long is 14.7% higher than yesterday and 19.9% higher from last week, while the number of traders net-short is 2.6% lower than yesterday and 13.3% 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.