Commitment of Traders charts turning bullish this week.
Commitment of Traders: Professionals -0.4% (short)
The large (SP) contract professionals continued reducing their short positions. This week’s reading is -0.4% of total open interest, up from -1.2% last week.
Commitment of Traders: Oscillator -117
The Commitment of Traders Oscillator looks like it’s making a double bottom pattern. The Oscillator reading is -117, down from -66 last week.
Last week I said this Oscillator pattern suggested we would re-test the 1,200 level. On Monday we reached a low of 1,233 but on lower volume than the last sell off. If the volume on down days continues to be light then this would indicate a successful test and another bullish phase for the market.
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.