The U.S. benchmark stock index S&P500 touched a new record high with CFD (contract for difference) SPX500 reaching 2996 area during before early close on Wednesday over 4th of July Independence Day holiday.
We recently reiterated that the broader bull trend in S&P500 remains intact, and we forecasted the next target for S&P500 around 3200 area.
As the index has moved higher, retail customers have increased short positions and the retail sentiment points to further upside,
- 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 as a contrarian indicator since retail positioning moves in the opposite direction to market movements.
- As of today, according to data from IG markets, only 27 percent of retail positions are bullish on S&P500, while 73 percent are on the short side, suggesting further upside possibility for the S&P500.
As equities move higher, we expect the safe havens to suffer to some extent until the next major risk aversion.
- In yesterday’s trading, USD/JPY has formed a bullish Doji candle, while XAU/USD (Gold) has formed a bearish Doji candle suggesting near term trouble for the Gold and yen bulls.
- Gold price likely to decline towards $1360 area, while USD/JPY likely to test 110.5 resistance area.
