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Feed ExplorerGoldman Sachs and JPMorgan Chase have both issued warnings, with the rebound in the U.S. stock market unable to conceal underlying crises. Goldman Sachs' model indicates that a surge in volatility has triggered CTA risk control mechanisms, leading systematic funds to engage in a comprehensive net sell-off over the next week, regardless of market direction. The scale of this sell-off may reach a historical extreme. If the S&P 500 falls below its medium-term pivot support, it could trigger a new wave of selling. Meanwhile, market makers' negative Gamma exposure is amplifying volatility, with liquidity depth approaching the low levels seen on 'Liberation Day', pushing the market into a high-risk zone.
"Storm is not over yet"! Goldman Sachs: CTA fully turns bearish, systematic selling pressure may reach the highest this year in the coming week
Goldman Sachs and JPMorgan Chase both issued warnings, indicating that the rebound in the U.S. stock market cannot conceal the underlying crisis. Goldman Sachs' model shows that the surge in volatility has triggered the CTA risk control mechanism. Regardless of market fluctuations, systematic funds are expected to net sell comprehensively in the coming week, with the scale of selling potentially reaching historical extremes. If the S&P 500 breaks below the mid-term pivot support, it will further ignite a new wave of selling. Meanwhile, market makers' Gamma exposure turning negative amplifies volatility, and liquidity depth is approaching the "liberation day" lows, putting the market in a high-risk zone
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