NUMBER OF TRADERS NET-SHORT INCREASED FROM LAST WEEK
US 500: Retail trader data shows 27.4% of traders are net-long with the ratio of traders short to long at 2.65 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2461.52; price has moved 16.4% higher since then. The number of traders net-long is 11.0% higher than yesterday and 0.6% lower from last week, while the number of traders net-short is 1.7% higher than yesterday and 1.2% higher from last week.
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S&P 500 SENTIMENT SUGGESTS A MIXED TRADING 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. 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 Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX