US 500: Retail trader data shows 50.86% of traders are net-long with the ratio of traders long to short at 1.03 to 1. In fact, traders have remained net-long since Nov 22 when US 500 traded near 4,003.91, price has moved 1.47% lower since then. The number of traders net-long is 21.72% higher than yesterday and 9.88% higher from last week, while the number of traders net-short is 5.31% lower than yesterday and 0.49% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests US 500 prices may continue to fall.
Our data shows traders are now net-long US 500 for the first time since Nov 22, 2022 when US 500 traded near 4,003.91. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger US 500-bearish contrarian trading bias.
