The latest CFTC Commitments of Traders report highlights a bullish sentiment in the equities market, with significant purchases of SPX futures indicating optimism about U.S. equities. This positive outlook is likely driven by expectations of favorable outcomes from the upcoming Consumer Price Index (CPI) release or reduced market volatility. The report also shows short-covering in the VIX, suggesting diminishing expectations for market volatility, which further supports the bullish sentiment. Additionally, the strategic buying of longer-duration bonds reflects a desire to lock in current yields before any potential rate hikes, while the aggressive selling of SOFR futures indicates anticipation of higher short-term interest rates.
The ProShares Ultra S&P500 (SSO) ETF saw a notable increase, closing at $95.77, up 1.89% from the previous close of $93.99, as of 16:20 on Friday, January 17.