Look at the chart above. The area marked in yellow indicates a period when speculators were increasing their long positions (26.9 thousand fresh contracts were added) on S&P 500. Shortly after this period there was a minor correction in prices. Then the index continued its march up.
Now we are encountering a different pattern. Although the index made a fresh top, speculators are currently decreasing their long positions. Last week they were even net SHORT the S&P 500 - look at the chart below:
Generally such pattern precedes an incoming weakness in stock prices. Whenever we see (areas marked in yellow):
- speculators shorting the index
- stock prices still going up