S&P 500: Goldman Says says CTA buying could come in big if bounce is strong

EditorSenad Karaahmetovic
Published 03/18/2025, 08:28 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Goldman Sachs anticipates substantial buying activity in the near future from trend followers.

The firm’s futures strategists have modeled a scenario where Commodity Trading Advisors (CTAs) are projected to buy over $45 billion of S&P 500 (SPX) equity risk within the next month.

This level of forward demand is unprecedented, being the largest since the beginning of 2023.

Goldman Sachs’ analysis suggests that the market is poised for a significant rebound, as the volume of purchasing by CTAs is calculated based on a tape that is two standard deviations above the norm.

The extensive selling by trend-following investors has led to a market condition where little additional supply is expected to be available.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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