Goldman: CTAs Expected to Drive $33B+ Sell This Week as S&P 500 Remains Volatile

Goldman Sachs Group Inc. warns that trend-following algorithmic trading (CTAs) are likely to remain net sellers this week, potentially driving $33 billion in additional selling as the S&P 500 Index approaches key triggers. If the S&P 500 falls below 6,707, up to $80 billion in systematic selling could be unleashed over the next month. Thin liquidity and short gamma positioning are expected to keep the market choppy, with S&P 500 top-of-book liquidity down to $4.1 million from a year-to-date average of $13.7 million. The week’s volatility followed a Friday rally that erased a mid-week slump after an AI automation tool from Anthropic PBC triggered a sell-off in software, financials and资管 stocks. February typically features weaker and choppier conditions, and retail buying fatigue is evident with a $690 million net sell in the latest two-day retail imbalance.