Trader Sentiment is Roughly Balanced for the S&P

US 500: Retail trader data shows 44.4% of traders are net-long with the ratio of traders short to long at 1.25 to 1. In fact, traders have remained net-short since Apr 03 when US 500 traded near 2636.7; price has moved 0.2% higher since then. The number of traders net-long is 2.2% lower than yesterday and 0.1% lower from last week, while the number of traders net-short is 3.2% higher than yesterday and 2.6% lower 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. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed US 500 trading bias.

— Written by Dylan Jusino, DailyFX Research