Retail Traders Net-Short Increases by 7% Since Yesterday
US 500: Retail trader data shows 28.1% of traders are net-long with the ratio of traders short to long at 2.56 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2692.65; price has moved 6.0% higher since then. The number of traders net-long is 0.2% higher than yesterday and 15.9% lower from last week, while the number of traders net-short is 7.0% higher than yesterday and 18.3% higher from last week.
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S&P 500 Net-Shorts Signal Bullish 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 Yayati Tanwar, DailyFX Research