Rebound Fails to Stem New Wave of Selling
Last Friday's market rebound temporarily eased losses, but the relief rally proved short-lived. Goldman Sachs' trading desk warns a new wave of systematic selling from algorithm-driven funds is already building momentum.
Technical Indicators Trigger Sell-Off
With S&P 500 breaking key support levels, commodity trading advisors (CTAs) have activated automated selling mechanisms. This technical-driven strategy - disconnected from fundamental analysis - now emerges as a major market pressure point.
Massive Selling Potential Looms
Goldman forecasts approximately $15.4 billion in systematic selling this week even under neutral market conditions. Should weakness persist, potential selling pressure could surge to $33 billion within seven days.
- Market decline: Potential $33B weekly pressure
- Index below 6707: $80B potential selloff monthly
- Stable market: Expected $15.4B weekly selling
- Market rally: Still $8.7B potential selloff
Strategy Shifts Spark Domino Effect
Automated position reduction by quantitative funds risks triggering cascading effects, amplifying market volatility. Investors should monitor technical selling pressure's impact on short-term movements.