S&P 500: Weekly Short Positions Soar 29% Prompting a Bullish Bias
49% of Retail Traders are Net-Long
US 500: Retail trader data shows 49.3% of traders are net-long with the ratio of traders short to long at 1.03 to 1. The number of traders net-long is 10.0% lower than yesterday and 5.9% lower from last week, while the number of traders net-short is 10.3% higher than yesterday and 29.0% higher from last week.
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S&P 500 Sentiment Suggest Prices may Rise
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 Jake Schoenleb, DailyFX Research