S&P 500 in a Precarious Position – What to Watch
Markets

S&P 500 in a Precarious Position – What to Watch

DailyFX.com -

S&P 500 in a Precarious Position – What to Watch

Why and how do we use the SSI in trading? View our video and download the free indicator here

US S&P 500 - Retail CFD traders continue to hold a near-record short position in the SPX500, which tracks the fair value of S&P 500 futures prices. A purely contrarian view of crowd sentiment points to further stock market gains.

But we will repeat what we said last week-such heavily one-sided sentiment often coincides with significant price extremes and reversals . The difficulty is that such reversals are by definition only clear in hindsight, and we would need to see a marked shift in retail positions to confirm any such moves. Until that happens we see little choice but to cautiously favor further strength.

See next currency section : EURUSD - What do we Need to see for a Euro Breakout?

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link .

Contact David via Twitter at http://www.twitter.com/DRodriguezFX

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Learn forex trading with a free practice account and trading charts from FXCM .

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.

Other Topics

ForEx

Latest Markets Videos