US 500: Retail trader data shows 38.6% of traders are net-long with the ratio of traders short to long at 1.59 to 1. In fact, traders have remained net-short since Feb 13 when US 500 traded near 2622.67; price has moved 5.0% higher since then. The number of traders net-long is 0.7% higher than yesterday and 2.5% lower from last week, while the number of traders net-short is 5.5% lower than yesterday and 11.6% 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. Positioning is less net-short than yesterday but more 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