FxWirePro: Retail sentiment points to further upside in S&P500

.The U.S. benchmark stock index S&P500 is likely to move higher,

• At least, retail sentiment points in that direction, and there are plenty of fuels which can act as catalysts; a positive Brexit agreement, a Sino-American trade agreement, and better economic performance by the U.S. economy.
• However, one must note that the actual outcome of the above-mentioned factors could act as negative catalysts too.  Our current assessment is that the U.S. economy would rebound in the second half of 2019, while China and the United States would seal an agreement. The Brexit outcome remains as uncertain as ever, with UK politicians continuing their daily to and fro from parliament to Brussels to Northern Ireland.

We expect the S&P500 to continue the current sell-off further, however, a retail sentiment strongly suggests that the broader trend still remains bullish biased.

Retail sentiment:

• The sentiment reports from IG Markets, which is a UK-based company providing trading in financial derivatives such as contracts for difference and financial spread betting, strongly suggest that the broad trend is still bullish for S&P500 index.
• IG markets’ retail positions data provide a glimpse to retail traders’ positions, which are largely used a contrarian indicator since retail positioning moves in opposite direction to market movements.
• As of today, according to data from IG markets, only 28 percent of retail positions are bullish on S&P500, while 72 percent are on the short side, suggesting further upside possibility for the S&P500. 
• The S&P500 is currently trading at 2805 area