S&P 500: Retail Traders Increase Weekly Short Positions Over 20%
Number of Traders Net-Short Jumps 22.9%
US 500: Retail trader data shows 42.9% of traders are net-long with the ratio of traders short to long at 1.33 to 1. The number of traders net-long is 3.7% higher than yesterday and 7.8% lower from last week, while the number of traders net-short is 3.0% lower than yesterday and 22.9% higher from last week.
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Current Sentiments Conflict With Each Other
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed US 500 trading bias.
--- Written by Jack Schwarze, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.