Goldman Sachs Trader Warning: U.S. Stock Market Sell-Off Not Over
BlockBeats News, February 9th, the trading division of Goldman Sachs Group stated that the U.S. stock market rebounded last Friday, nearly recovering from the brutal sell-off earlier in the week, and will face more selling pressure from trend-following algorithmic funds this week. The S&P 500 Index has breached a short-term trigger point, triggering Commodity Trading Advisors (CTAs) to sell stocks. Goldman Sachs expects that regardless of the market direction, these systematic strategies that track market trends rather than fundamental factors will continue to be net sellers in the coming week.
Goldman Sachs stated that if the stock market falls again, it could trigger about $33 billion in selling this week. If the market pressure persists and the S&P 500 Index falls below 6,707 points, there could be up to $80 billion in systematic selling over the next month. In a stable market scenario, CTAs are expected to sell about $15.4 billion in U.S. stocks this week. Even if the stock market rises, these funds are expected to sell about $8.7 billion. (FX678)
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