Dow Jones, S&P 500 Appear Vulnerable as Retail Traders Increase Bullish Bets

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Dow Jones, S&P 500 Appear Vulnerable as Retail Traders Increase Bullish Bets
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The Dow Jones and S&P 500 may be at risk as retail traders continue boosting their bullish bets on Wall Street. What are key levels to watch for ahead? Get your market update from ddubrovskyFX here:

The Dow Jones and S&P 500 have been aiming lower in recent weeks, falling in-line with losses since topping at the end of last year. Recent losses have been increasingly associated with retrial traders increasing their upside exposure on Wall Street. This can be measured by using IG Client Sentiment , which often acts as a contrarian indicator.

Since the majority of traders are biased to the upside, this suggests that prices may continue falling. This is as long exposure increased by 2.63% and 66.49% compared to yesterday and last week respectively. With that in mind, these combinations are offering a stronger bearish contrarian trading bias.Dow Jones futures have extended losses over the past few trading sessions, bringing prices back into the 32902 – 33623 support zone after rejecting 35281 resistance.

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