S&P 500: Bounce Off 2700 Likely
Net-Long S&P Positions Dip Below 50%
US 500: Retail trader data shows 39.8% of traders are net-long with the ratio of traders short to long at 1.52 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2634.13; price has moved 2.9% higher since then. The number of traders net-long is 2.1% higher than yesterday and 3.2% higher from last week, while the number of traders net-short is 4.8% higher than yesterday and 10.1% higher from last week.
S&P May Reverse Higher
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.