S&P 500: Net-Long Positions Increased by 12.4% from Yesterday
PRICE MOVED 18.1% HIGHER SINCE JANUARY 07
US 500: Retail trader data shows 27.2% of traders are net-long with the ratio of traders short to long at 2.67 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2481.03; price has moved 18.1% higher since then. The number of traders net-long is 12.4% higher than yesterday and 5.0% higher from last week, while the number of traders net-short is 4.7% lower than yesterday and 0.5% lower from last week.
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S&P 500 SENTIMENT WARN THAT PRICE TREND MAY SOON REVERSE
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
Follow Nancy on Twitter @NancyPakbazFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.