SPX500 –Trading crowds remain incredibly short the SPX500, which tracks the fair value of the SP 500 futures price. This in itself suggests the stock market rally isn’t over yet.
Trade Implications SPX 500– There are over 4 traders short the SPX500 for every one that is long, and a contrarian view of crowd sentiment leaves us in favor of SP 500 strength. It’s always tempting to claim that the recent correction in stocks will be enough to produce THE reversal. Yet we don’t seen enough evidence to support such a claim, and indeed stocks seem poised for fresh record highs.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at https://www.Facebook.com/DRodriguezFX