S&P 500 Remains a Buy until this Changes
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S&P 500 Remains a Buy until this Changes

DailyFX.com -

S&P 500 Remains a Buy until this Changes

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US S&P 500 - Retail traders are their most short the SPX500-a CFD which tracks the price of the US S&P 500-since its inception. A contrarian view of crowd sentiment thus leaves us firmly in favor of buying into S&P gains until this changes.

The clear caveat remains unchanged: such impressively one-sided positioning often coincides with significant price extremes and reversals. These extremes are by definition only clear in hindsight, however; the S&P 500 has continued onto fresh highs despite our warnings. We would ultimately need to see a substantial shift in crowd sentiment to call for a sustained turn lower. Until that happens there is little reason to abandon our bullish S&P 500 trading bias.

See next currency section : EURUSD - Euro Forecast Could Shift Rapidly

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

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

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

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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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