FxWirePro: Retail sentiment remains favorable to S&P500 bulls

The U.S. benchmark stock index, S&P500 is struggling lately,

• Since mid-February, the S&500 has been struggling in a tight range of 60 points. The bulls look somewhat exhausted.

However, good news for the bulls that the S&P500 is likely to rise further, at least, the retail sentiment suggests so,

• 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 S&P500 is likely to rise further.
• 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 24 percent of retail positions are bullish on S&P500, while 76 percent are on the short side, suggesting upside possibility for the S&P500. 

However, extreme positioning does suggest that there could be a near term correction. The benchmark is currently trading at 2790 area.