Forecasts Favor Further Stock Market Declines

DailyFX

View photo

.
ssi_spx500_body_Picture_16.png, Forecasts Favor Further Stock Market Declines

SPX500Clear retail sentiment extremes timed almost the exact top in the S&P 500, and more recent positioning swings leaves us in favor of SPX500 declines.

Trade Implications SPX 500 It’s worth noting that retail crowds remain net-short the SPX500 contract—that would normally leave us bullish. But the substantial swing in positioning through recent weeks makes the trend shift fairly clear. As with the Dollar more broadly, we would allow for the possibility of a short-term pullback (SPX500 bounce), but we would treat that as an opportunity to get short.

--- 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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Rates

View Comments (0)