After several months of generally bearish posturing, large traders seem to be swinging into somewhat more optimistic territory, according to the latest Commitments of Traders report issued Friday.
While my S&P 500 setup remains short for now, other markets are looking a little more bullish in time for the seasonally favourable pre-Christmas period, which is typically a positive time for equities.
My signal for the benchmark BKX U.S. Bank Index, based on trader positioning in the 3-month Eurodollar contract, goes bullish as of next week's open of trading, as you can see on my latest signals table.
And crude oil will be bullish as well.
Also, my currently bearish Nikkei signal will go to cash or possibly bullish in one week's time. (It remains bearish this coming week.)
Positioning in gold and silver in the past two weeks is also looking a little more bullish - or at least less bearish - possibly a sign of post-election U.S. dollar weakness. That, too, is typically positive for U.S. equities.
See my latest signals table for more details on trader positioning in these and the other markets I trade using the free weekly COT data issued by the U.S. Commodity Futures Trading Commission.