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    MARKET EDGES

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Takeaway: Short interest in the S&P 500 is the lowest its been since mid-December.

Reflation Reversal Risk Is Growing - caution tape

Investor sentiment is one of the key indicators we track. 

Unsurprisingly, what happens over the course of the market cycle is that most investors are:

  1. Most bearish at the market lows
  2. Most bullish at the top

As Hedgeye Senior Macro analyst Darius Dale and CEO Keith McCullough discussed on The Macro Show this morning, that's exactly what we're witnessing right now in non-commercial S&P 500 futures and options positioning. As you can see in the chart below, short interest in the S&P 500 is the lowest its been since mid-December.

Remember what happened next?

Click to enlarge

 Keep your head up out there.