GOLDMAN SAYS $185 BILLION OF FORCED SELLING COULD HIT GLOBAL STOCKS THIS MONTH
CTAs are funds that trade on price signals alone.
Their programs buy when prices hold above set levels and sell when prices fall below them, regardless of earnings or news.
Goldman’s current estimates:
– $7.5 billion of global selling next week under most scenarios, with $4.5 billion in the S&P 500
– $31.5 billion if markets fall further
– Up to $185 billion over one month if the decline continues
The S&P 500 trigger levels are 7,455 short term, 7,204 medium term, and 6,765 long term.
Each level that breaks moves more funds from holding to selling. That selling pushes prices lower, which brings the next level into range.
Goldman says the recent tech decline reflects systematic funds cutting exposure rather than a change in the earnings outlook.
GOLDMAN SAYS $185 BILLION OF FORCED SELLING COULD HIT GLOBAL STOCKS THIS MONTH
CTAs are funds that trade on price signals alone.
Their programs buy when prices hold above set levels and sell when prices fall below them, regardless of earnings or news.
Goldman's current… pic.twitter.com/ovemASzHs4
— Bull Theory (@BullTheoryio) August 2, 2026
BofA says CTAs already sold hard in S&P and Nasdaq last week and flattened a big chunk of their long positions.
Goldman notes the S&P has already broken its short term trigger, unlocking more potential CTA pressure.
Systematic managers gave back a quarter of year to date gains during the AI stock pullback.
Hedge funds cut tech exposure at the fastest pace Goldman has recorded.