TRADERS REMAIN NET-LONG
US 500: Retail trader data shows 60.6% of traders are net-long with the ratio of traders long to short at 1.54 to 1. In fact, traders have remained net-long since Dec 06 when US 500 traded near 2682.22; price has moved 3.3% lower since then. The number of traders net-long is 9.1% higher than yesterday and 9.7% higher from last week, while the number of traders net-short is 3.7% lower than yesterday and 11.4% higher from last week.
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S&P 500 SENTIMENT NOW GIVES A MIXED TRADING BIAS
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests US 500 prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed US 500 trading bias.
--- Written by Nancy Pakbaz, CFA, DailyFX Research