US 500: Retail trader data shows 44.2% of traders are net-long with the ratio of traders short to long at 1.26 to 1. In fact, traders have remained net-short since Apr 03 when US 500 traded near 2612.25; price has moved 1.6% higher since then. The number of traders net-long is 3.4% higher than yesterday and 10.4% lower from last week, while the number of traders net-short is 9.1% higher than yesterday and 6.6% higher 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. 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 Dylan Jusino, DailyFX Research