S&P 500 May Continue to Trade Higher According to Sentiment
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Net-Long Positions Dip Below 30%
US 500: Retail trader data shows 28.8% of traders are net-long with the ratio of traders short to long at 2.48 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2706.29; price has moved 5.8% higher since then. The number of traders net-long is 0.8% higher than yesterday and 5.7% lower from last week, while the number of traders net-short is 5.8% higher than yesterday and 8.5% higher from last week.
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S&P 500 Trades at the Highest Level With Bullish 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. 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.