• Home
  • Contact
  • Privacy Policy
  • Store
my forex coaching
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Crypto
  • Technical Analysis
  • Stock Trading
  • Product Reviews
  • News
  • Videos
No Result
View All Result
my forex coaching
No Result
View All Result
Home Technical Analysis

Stocks at Risk as Retail Traders Increase Long Bets

Forex Tips by Forex Tips
January 4, 2023
in Technical Analysis
0
Stocks at Risk as Retail Traders Increase Long Bets
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Dow Jones, S&P 500, Retail Trader Positioning, Technical Analysis – IGCS Equities Update

  • Retail traders keep building upside exposure on Wall Street after the holidays
  • This offers a bearish contrarian trading bias for the Dow Jones and S&P 500
  • Meanwhile, both indices face Death Crosses between key moving averages

Recommended by Daniel Dubrovsky

Get Your Free Equities Forecast

As we move further away from the Christmas and the New Year holidays, market participation will slowly rise and return to relatively normal levels. This includes retail traders. Last week, we looked at how they were positioned on Wall Street using IG Client Sentiment (IGCS). Doing so could help reveal what may come from the Dow Jones and S&P 500. IGCS tends to function as a contrarian indicator. It seems that the bearish bias for equities still holds. Let us take a closer look.

Dow Jones Sentiment Outlook – Bearish

According to IGCS, about 47% of retail traders are net-long the Dow Jones. Since most of them are net-short, this hints that prices may continue rising. But, upside exposure has increased by 28.74% and 19.03% compared to yesterday and last week, respectively. With that in mind, recent changes in exposure hint that the Dow Jones may soon reverse lower despite overall positioning.

Dow Jones Sentiment Outlook - Bearish

Dow Jones Futures Technical Analysis

A bearish Death Cross may be on the horizon for the Dow Jones between the 20- and 50-day Simple Moving Averages (SMAs). That could open the door to an increasingly downside technical bias. Immediate support appears to be a combination of the 38.2% Fibonacci retracement level at 32709 and the former falling trendline from the beginning of 2022. Clearing under exposes the 31738 – 32017 support zone. Otherwise, key resistance is the 23.6% retracement level at 33672.

Dow Jones Futures Technical Analysis

Chart Created in Trading View

S&P 500 Sentiment Outlook – Bearish

According to IGCS, about 60% of retail traders are net-long the S&P 500. Since most traders are biased to the upside, this hints prices may continue falling. Meanwhile, upside exposure has increased by 14.79% and 2.71% compared to yesterday and last week, respectively. With that in mind, the combination of current positioning and recent changes in exposure produces a stronger bearish contrarian trading bias.

Recommended by Daniel Dubrovsky

Improve your trading with IG Client Sentiment Data

S&P 500 Sentiment Outlook - Bearish

S&P 500 Futures Technical Analysis

S&P 500 futures have established a bearish Death Cross between the 20- and 50-day SMAs on the chart below. This is offering an increasingly downside technical bias after prices confirmed a breakout under a bearish Rising Wedge in December. Immediate support is at 3788. Breaking under the latter exposes 3704 towards the October low at 3502. Otherwise, key resistance is the falling trendline from last year.

S&P 500 Futures Technical Analysis

Chart Created in Trading View

— Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com

To contact Daniel, follow him on Twitter:@ddubrovskyFX





Source link

Share76Tweet47

Related Posts

Natural Gas Technical Outlook: How Much More Downside?

Natural Gas Technical Outlook: How Much More Downside?

by Forex Tips
February 3, 2023
0

Natural Gas, NG - Technical Outlook:A major double top pattern points to further downside in natural gas.No sign of...

Our data shows traders are now net-long GBP/USD for the first time since Jan 17, 2023 when GBP/USD traded near 1.23.

Our data shows traders are now net-long GBP/USD for the first time since Jan 17, 2023 when GBP/USD traded near 1.23.

by Forex Tips
February 2, 2023
0

Number of traders net-short has decreased by 19.21% from last week.SYMBOLTRADING BIASNET-LONG%NET-SHORT%CHANGE IN LONGSCHANGE IN SHORTSCHANGE IN OIGBP/USDBEARISH50.27%49.73%5.46% Daily29.25%...

Crude Oil Technical Outlook: Downward Pressure Intact

Crude Oil Technical Outlook: Downward Pressure Intact

by Forex Tips
February 2, 2023
0

CRUDE OIL, WTI - Technical Outlook:Crude oil’s immediate downward pressure remains intact.However, the weakness since last year hasn’t changed...

Bullish View Intact After the Fed

Bullish View Intact After the Fed

by Forex Tips
February 2, 2023
0

S&P 500, SPX, NASDAQ 100, NDX - TECHNICAL OUTLOOK:US equities’ technical posture continues to improve.The S&P 500 and the...

Natural Gas Price Plunge Extends, Milder-Than-Expected US Weather in Focus

Natural Gas Price Plunge Extends, Milder-Than-Expected US Weather in Focus

by Forex Tips
February 2, 2023
0

Natural Gas, US Weather Outlook, 7th Week of Losses? – Technical Update:Natural gas prices fell the most on Wednesday...

Load More

Recent Posts

  • Natural Gas Technical Outlook: How Much More Downside?
  • Our data shows traders are now net-long GBP/USD for the first time since Jan 17, 2023 when GBP/USD traded near 1.23.
  • What is the Golden Cross Strategy & How Does it Work?
  • Is the Metaverse really turning out like ‘Snow Crash’? – Cointelegraph Magazine
  • ECB Hike Rates by 50bps, EURUSD Looks Vulnerable
Forex Pulse Detector

Categories

  • Alerts
  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.