We've been tracking the commercial traders' actions via the CFTC Commitment of Traders report for years. Over the years, we've determined that their anxiousness to buy or sell matters every bit as much as their total buying or selling in raw numbers. The current situation in the S&P 500 futures is a great example of this.
Commercial traders have been bullish in the equity markets all summer however, last week the commercial traders were net sellers of more than 35,000 contracts. You can see the impact this type of action has had on the market in the past on the chart below. We provided a more in depth look at this setup in our piece for Equities.com and we plan to provide a deeper look at this later in the week.
Read, "Commercial Selling Tips S&P 500 Bias" at Equities.com
