Tanalys

Crowd Resistance to S&P 500 Rally Hints of Further Gains

ssi_spx500_1_body_Picture_18.png, Crowd Resistance to Samp;P 500 Rally Hints of Further Gains

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SPX500 – Retail CFD speculators remain short the SP 500 (SPX500) after nearly flipping net-long during the recent selloff, but even a -6% move in two weeks could shake positioning.

Trade Implications SPX500 – The SPX500 tracks the fair value of the SP 500 futures price, and a look at the chart above shows that traders had remained consistently net-short the contract since it traded near 1400. Falling long interest alongside rising short interest gives bias for a continued move higher. A break of 1850, the yearly high, if the SSI ratio remains negative, would give priority to a breakout with potential to be fueled by shorts covering their positions.

— Written by Christopher Vecchio, Currency Analyst

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