S&P 500

Net-Long Positions Reaches the Highest Level in 2 Weeks

US 500: Retail trader data shows 40.5% of traders are net-long with the ratio of traders short to long at 1.47 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2672.32; price has moved 2.6% higher since then. The percentage of traders net-long is now its highest since Jun 06 when US 500 traded near 2771.14. The number of traders net-long is 15.9% higher than yesterday and 4.3% higher from last week, while the number of traders net-short is 12.5% lower than yesterday and 12.4% lower from last week.

S&P 500 Shifts to Bearish Bias

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.

--- Written by Abdullah AlAmoudi, DailyFX Research