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 increase in aggregate dollar longs and short positions in several currencies points to a strong expectation of a strengthening USD, likely influenced by anticipated monetary policy tightening.
The Direxion Daily S&P 500 Bull 3X Shares (SPXL) experienced a notable increase, rising 2.65% to $176.87 as of 16:20 on Friday, January 17.