US 500: Retail trader data shows 37.7% of traders are net-long with the ratio of traders short to long at 1.65 to 1. In fact, traders have remained net-short since Feb 13 when US 500 traded near 2665.3; price has moved 2.6% higher since then. The number of traders net-long is 1.7% lower than yesterday and 1.6% lower from last week, while the number of traders net-short is 11.1% higher than yesterday and 51.0% 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.
--- Written by Dylan Jusino, DailyFX Research