TRADERS REMAIN NET-SHORT
US 500: Retail trader data shows 26.3% of traders are net-long with the ratio of traders short to long at 2.8 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2418.04; price has moved 20.3% higher since then. The number of traders net-long is 5.6% higher than yesterday and 5.1% lower from last week, while the number of traders net-short is 1.8% higher than yesterday and 1.8% higher from last week.
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S&P 500 PROMPTS 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