One Reason To Stay Long Term Bullish

I realize that recently I have sounded like doom and gloom with most of my posts calling for lower prices.

While the intermediate term low has yet to be put into place I thought it important to show the long term health of the market and why there is quite a bit of upside left in it.

The chart below is the S&P 500 Weekly.

• The Blue Line is the Commercial Traders Positions, which is heavily long (BULLISH)


• The Green Line are the commodity fund positions, which are heavily short (BULLISH)


• The Red Line are the small traders positions which are Neutral

The fund traders have been selling like crazy ever since the recovery following the March correction. It is as if they have been waiting for the other shoe to drop and I am certain that the most recent market action has them smiling. Remember though, the Funds are usually wrong at major turning points and this is no exception.

It is important also that you realize the C.O.T. data trumps all other analysis in the S&P 500. This is not true in all the futures markets, but it certainly is true in equities.