Several bearish patterns in play the most immediate one being a small head and shoulders which retested the neck line yesterday and closed outside it, first target is 2850 ...
Second pattern is a bearish wedge which suggests quite a bit lower target 2772 ...
Retail seem to be swinging from short to long so it suggests it may well carry on going lower to cause them some pain ...
Taken from dailyfx
US 500: Retail trader data shows 32.4% of traders are net-long with the ratio of traders short to long at 2.09 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2539.44; price has moved 13.8% higher since then. The number of traders net-long is 9.0% higher than yesterday and 21.4% higher from last week, while the number of traders net-short is 3.8% lower than yesterday and 10.7% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.
Second pattern is a bearish wedge which suggests quite a bit lower target 2772 ...
Retail seem to be swinging from short to long so it suggests it may well carry on going lower to cause them some pain ...
Taken from dailyfx
US 500: Retail trader data shows 32.4% of traders are net-long with the ratio of traders short to long at 2.09 to 1. In fact, traders have remained net-short since Jan 07 when US 500 traded near 2539.44; price has moved 13.8% higher since then. The number of traders net-long is 9.0% higher than yesterday and 21.4% higher from last week, while the number of traders net-short is 3.8% lower than yesterday and 10.7% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current US 500 price trend may soon reverse lower despite the fact traders remain net-short.
Trade closed: target reached