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SPX500 –Retail CFD speculators remain heavily short the SPX500 contract, which tracks the fair value of SP 500 futures. Yet a more recent shift in positioning warns that the stock market rally could soon run out of steam.
Trade Implications SPX500 – Crowd positions were recently at their most short SPX500 on record as the SP pressed on to fresh highs. It’s worth noting however that short interest is down over 20 percent in the past 3 weeks. Long interest has risen by over 30 percent through the same stretch.
It’s been a fool’s errand to try and call THE top in stocks, but it seems risky to join crowds in buying the recent SP pullback.
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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