S&P 500 Trades Above 2790 With a Bullish Bias
Net-Long Positions are Down By 16.6% Since Last Week
US 500: Retail trader data shows 34.6% of traders are net-long with the ratio of traders short to long at 1.89 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2676.12; price has moved 4.3% higher since then. The number of traders net-long is 4.9% lower than yesterday and 16.6% lower from last week, while the number of traders net-short is 6.3% higher than yesterday and 9.6% higher from last week.
S&P 500 May Trade Higher Based on Sentiment
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 Abdullah AlAmoudi, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.