S&P 500 Consolidated Commitment of Traders (COT) – 2021-01-15 – Market Overview

Crowd Sentiment: S&P 500

The number of traders net-long is 27.76% higher from last week, while the number of traders net-short is 11.59% lower from last week.

As per the contrarian view to crowd sentiment, and the fact traders are net-short suggests S&P 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.

Commitment of Traders (COT) Report: S&P 500 AS OF: 2021-01-12 | US Investor Sentiment, % Bull-Bear Spread 27.42% for Wk of Jan 07 2021

Though US Investor Sentiment, % Bull-Bear Spread is at 27.42% and that is on higher side it might come down if we some fast and furious correction and if it comes near 0% that would be a time to buy again in quarter 1.

Institutions unwind-ed their decent longs & heavy shorts, if this heavy shorts unwinding continues and further long buildup is seen on the institutional side, then there is a high probability to test the resistance of $4000 in the first quarter of2021, however short term fast and furious correction cannot be ruled out have a buy on dip strategy.

Support: 3400-3500

Resistance: 3981-4020