SPX500 –Forex markets have been exceedingly choppy as of late, but stock indices continue marching to the beat of their own drummer. Heavily one-sided retail sentiment warns the SPX500 may hit fresh peaks.
Trade Implications – Our retail sentiment data shows that the number of orders short the SPX500 contract has surged 41 percent since last week, while long orders have fallen by a similar 32 percent. Indeed, our sample shows that there are currently 5.8 traders short the SPX500 for every long. We see little choice but to favor fresh record highs.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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