S&P 500 Correction May Continue
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, 02-01-2018 at 02:54 PM (704 Views)
US 500: Retail trader data shows 46.0% of traders are net-long with the ratio of traders short to long at 1.17 to 1. The number of traders net-long is 17.7% higher than yesterday and 26.5% higher from last week, while the number of traders net-short is 1.8% lower than yesterday and 5.9% lower from last week.
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.
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