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S&P 500: Net Shorts Continue Around Highest Yearly Levels

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Retail Traders Net-Short Increases by 7% Since Yesterday

US 500: Retail trader data shows 28.1% of traders are net-long with the ratio of traders short to long at 2.56 to 1. In fact, traders have remained net-short since May 03 when US 500 traded near 2692.65; price has moved 6.0% higher since then. The number of traders net-long is 0.2% higher than yesterday and 15.9% lower from last week, while the number of traders net-short is 7.0% higher than yesterday and 18.3% higher from last week.

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S&P 500 Net-Shorts Signal Bullish Sentiment

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger US 500-bullish contrarian trading bias.

--- Written by Yayati Tanwar, DailyFX Research

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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