SPX500 –Clear retail sentiment extremes timed almost the exact top in the S&P 500, and continued retail buying leaves us in favor of further SPX500 losses.
Trade Implications SPX 500–Self-congratulation aside, I think there’s scope for further SPX weakness. The fact that our sample shows retail traders at their least-short since December is one reason, but also I think we’re seeing the beginnings of a broader market deleveraging. Stocks, bonds, and even the Dollar might be the worst-performers if this forecast comes to fruition.
--- 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 http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
- Finance Trading
- Commodity Markets