US 500: Retail trader data shows 40.3% of traders are net-long with the ratio of traders short to long at 1.48 to 1. In fact, traders have remained net-short since Feb 13 when US 500 traded near 2635.95; price has moved 2.9% higher since then. The number of traders net-long is 6.2% lower than yesterday and 11.5% lower from last week, while the number of traders net-short is 11.4% higher than yesterday and 2.5% 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