Latest Commitment of Traders Report shows the Professionals have covered some Shorts in this latest rally.
Commitment of Traders: Professionals -8.7% (short)
The Professionals reduced their net Short positions from -12.0% to -8.7% of total open interest. The SP (large contract) Professionals are still more bearish than the ES (mini contract) Professionals, with the red line in the chart above still negative (-11.2%). Back testing shows the SP Professionals are a more reliable indicator of market direction.
Commitment of Traders: Oscillator -104
The Commitment of Traders Oscillator fell this week from -51 to -104 and back down to over-sold levels. We’ll need to test the 700 to 750 level again with the Professionals continuing to cover Shorts to convince me that the bottom is in.
Remember, the Commitment of Traders data is collected weekly after the close on Tuesday and the Commitment of Traders Report is published after the close on Friday.