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Contrarian Alert: Retail Is Buying, But Should You Sell?

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So far, there are no significant changes in the options flow suggesting a shift in sentiment or restructuring of previously established bullish positions. The market remains on watch, but interesting signals are coming from other sources.

According to the latest COT reports , institutional players continue to align with the current trend, reinforcing its stability.

However, retail positioning is starting to show signs of a potential reversal , with a noticeable increase in net-long positions and fresh buying activity over the past two days. This often indicates early countertrend interest.

The well-known contrarian principle — "do the opposite" — applies here, although it shouldn't be taken as an immediate signal to short.

For my part, I’ve identified the 0.6565–0.6570 zone as a key level where long positions are concentrated:

A rejection from this zone could offer a solid shorting opportunity.
A break above it would suggest the trend might resume higher.

By that point, updated options flow data and new positioning COT reports may provide further confirmation.

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