It has been a while since we did a full-blown CTA positioning/selling threshold analysis update because, well, the last time we looked at said threshold levels - about two weeks ago - the S&P was trading at record highs of ~5,300 and had a long way to go down before any CTAs even considered selling.
When do CTAs start to sell
— zerohedge (@zerohedge) April 2, 2024
- Short term pivot level: 5092
- Med term: 4819 (this is the important one)
- Long term: 4588
Fast forward to today when things have changed rather quickly, and with the S&P sliding over 100 points, we are now far closer to worrying about forced liquidations (something we first hinted at last week in "We are Getting Closer to a CTA Selling Tsunami").
