Speculators have seemingly grown tired of following recent trends and the latest bearish shift in sentiment could hint of a larger, more significant shift in both price-action and sentiment.
Over the past few months speculators in ES & NQ futures have been buying (or going long), helping push both metrics to record highs. Even though the stock market has recovered off the recent pullback from record highs, the potential turn (lower) in sentiment could hint of a deeper move lower or a potential ongoing topping process in equity futures.
While minor shifts in sentiment alone don't often move the needle, especially with equity futures. Technically, the net long percentage for both ES and NQ should stabilize given how low the level of gross shorts are and how overbought bulls are currently.
