S&P 500: Price Moved by 14.9% Since January 7
NET-SHORT POSITIONS DECREASED FROM LAST WEEK
US 500: Retail trader data shows 28.5% of traders are net-long with the ratio of traders short to long at 2.51 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2539.44; price has moved 14.9% higher since then. The number of traders net-long is 1.3% lower than yesterday and 13.8% higher from last week, while the number of traders net-short is 5.7% lower than yesterday and 4.5% lower from last week.
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S&P 500 RECENT CHANGES SUGGESTS 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.