S&P 500 Bears Make Way for Bulls
US 500: Retail trader data shows 46.8% of traders are net-long with the ratio of traders short to long at 1.14 to 1. The number of traders net-long is 5.0% lower than yesterday and 5.3% higher from last week, while the number of traders net-short is 14.0% higher than yesterday and 5.1% 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 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.