I posted this from Goldman Sachs:
- Goldman Sachs warns that hedge funds could sell up to $42 billion next month
Likewise, Bank of America highlights CTA’s selling potential, naming a 5079 level for the S&P 500.
- BofA Says CTA Trend Follows Companies With Close Stop Loss Levels
- implies that further decline will likely put pressure on long positions in US CTA stocks.
- Stock trend strength deteriorates, implying CTA selling
BoA names the levels:
- SPX, 5079
- NDX, 17273
- RUT, 1958
With selling pressure systematically building, BoA says some gamma buying will act as a cushion up to around 5,000.
This article was written by Eamonn Sheridan at www.forexlive.com.
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