The stock market's trend is currently down but with CTAs net short, hedge funds de-risked, super bearish AAII sentiment and extreme fear, the vast majority is on the same side of the boat. Any whiff of positive news on tariffs and we'll likely get a ferocious rally.
Sentiment is in the gutter so bad that many are explaining why today's green close is irrelevant. I personally have not seen sentiment deteriorate this rapid off a 10-15% correction in indices. Yes, I'm also looking for more convincing signs that a countertrend rally is near, https://t.co/cOlfI9yqpW
I'm not sure i've ever seen crypto sentiment this low. Not even after the FTX collapse. Why is everyone so depressed right now?

Bank of America (BofA) has reported that trend followers are increasing short positions in U.S. equities ahead of an impending tariff deadline. According to their analysis, short positions in the S&P 500 have reached their highest level since February 2016, while shorts in the NASDAQ-100 are at their most elevated since January 2023. Additionally, it is suggested that both short- and long-term traders are likely holding substantial shorts in the Russell 2000 index. Despite a bearish sentiment in the market, characterized by a decline in investor confidence, many traders have not significantly reduced their risk exposure or increased cash holdings. This positioning indicates a potential for a market rally if positive news regarding tariffs emerges.