US 500: Retail trader data shows 50.3% of traders are net-long with the ratio of traders long to short at 1.01 to 1. The number of traders net-long is 12.1% higher than yesterday and 18.4% higher from last week, while the number of traders net-short is 4.2% lower than yesterday and 15.8% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests US 500 prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger US 500-bearish contrarian trading bias.
— Written by Dylan Jusino, DailyFX Research