TRADERS REMAINED NET-SHORT SINCE JAN 07
US 500: Retail trader data shows 32.4% of traders are net-long with the ratio of traders short to long at 2.09 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2527.99; price has moved 4.1% higher since then. The number of traders net-long is 0.4% lower than yesterday and 13.8% higher from last week, while the number of traders net-short is 3.1% lower than yesterday and 1.0% lower from last week.
For more in-depth analysis, check out the Q1 2019 Forecast for Equities
S&P 500 SENTIMENT CONTINUES TO PROMPT A MIXED 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Nancy Pakbaz, CFA, DailyFX Research