Trader Sentiment Shows Mixed Trend for S&P 500
US 500: Retail trader data shows 32.3% of traders are net-long with the ratio of traders short to long at 2.1 to 1. The number of traders net-long is 0.5% higher than yesterday and 15.2% higher from last week, while the number of traders net-short is 2.1% higher than yesterday and 3.5% 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.
--- Written by Dylan Jusino, DailyFX Research