Large speculators are aggressively short $ES_F, holding their largest net-short position since Oct. 2011.
— Ian Culley (@IanCulley) April 11, 2023
Today’s Chart of the Day was shared by Ian Culley (@IanCulley). Large speculators (hedge funds) are aggressively short S&P 500 futures right now, with their largest net-short position since October 2011. Between tomorrow’s CPI report, and earnings season, there are plenty of catalysts in the near term that could spark a move lower in the S&P 500. Ironically, these bearish bets, placed in anticipation of a move lower, could end up fueling a move higher. As Ian points out, these levels of extremely bearish positioning have often been found at or near multi-year lows for the S&P 500. Markets rarely crash when everybody is expecting them to.