Commitment of Traders: Professionals -12.0% (short)
The Emini had an 84 point rally last week but the Commitment of Traders Report shows the Professionals are still heavily Short.
The Professionals covered some of their Short positions this week. Their net Short positions decreased from -12.6% to -12.0% of total open interest. Bear in mind the data is collected after the close on Tuesday.
The red line in the chart above continues to be negative and trend down. This shows the SP (large contract) Professionals are increasingly more bearish than the ES (mini contract) Professionals. Back testing shows the SP Professionals are a more reliable indicator of market direction.
Commitment of Traders: Oscillator -51
The Commitment of Traders Oscillator continued to move up from -63 to -51 this week. The Bullish Divergence pattern mentioned over the last 2 weeks is marked on the chart.
I’m still not convinced that the Professionals are supporting this latest rally. Next week’s numbers will give us a better indication of how much Short covering took place last week.
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.