Need to See a Larger Move to Confirm S&P 500 Top

By DailyFx | Updated July 31, 2014 AAA - Need to See a Larger Move to Confirm S&P 500 Top

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SPX500 Retail CFD speculators remain heavily short the SPX500 contract, which tracks the fair value of the S&P 500 futures price. Until we see a larger shift in sentiment we’ll continue to call for further gains.

Trade Implications SPX500 Last week we noted that equity markets seemed almost “Unbreakable”. We’ve since seen a non-negligible shift in sentiment as the trading crowd grows less short; total long positions have doubled while short positions are down 30 percent. Yet there remain nearly 3 orders short for every long, and we’ll need to see a much more substantial move in sentiment to have any confidence in calling for a larger breakdown. Month-to-date lows of $1950 remain of particular interest.

See next currency section: NZDUSD - New Zealand Dollar at Clear Risk of Further Losses

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