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Reflections #8 - Large Specs reduce SPX shorts...

Latest CFTC data show a significant capitulation in S&P500 shorts for the week ending 6Jun. This comes in the wake of another postive week for equities with the SPX up now 4 consecutive weeks.

However, as we warned earlier, the SPX ran into heavy resistance zone around 4310/30 which was defended on friday. The SPX formed a shooting star on friday and coupled with very overbought conditions and short capitulation, we may see first signs of acute mountain sickness and recommend to turn defensive here with stops above the mentioned levels.


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