Goldman Sachs warns: The S&P 500 falls below the critical level of 6725, which may trigger a $40 billion selling pressure from CTA hedging funds next week.

Goldman Sachs warned that the S&P 500 index of the U.S. stock market has officially fallen below the highly watched technical level of 6,725 points, and this breakdown has triggered a sell signal for trend-following hedge funds, which may lead to a dumping of nearly $40 billion in stocks over the next week. (Background: The correlation between Bitcoin and U.S. stocks has soared to a three-year high, with “2025 gains fully retraced,” can Halving and DAT save the crypto market?) (Supplementary background: Goldman Sachs and Morgan Stanley both warn: U.S. stock valuations are too high, facing at least a 10% pullback!) According to a report by Reuters, Goldman Sachs indicated in an analysis report submitted to clients on November 20 that the S&P 500 index officially broke the highly watched technical level of 6,725 points that day, which is equivalent to triggering a sell signal for trend-following hedge funds, potentially leading to a dumping of nearly $40 billion in stocks in the coming week, further exacerbating downward pressure on the market. Total selling pressure could reach as high as $65 billion. Goldman Sachs explicitly stated in the report that trend-following hedge funds (CTAs) have long viewed 6,725 points as a critical decision threshold. Once it falls below this level, they will choose to liquidate existing long positions and even leverage shorting to bet on further declines in the stock market. In this regard, Goldman Sachs calculated based on its latest model that the stock market may see about $39 billion in systematic selling over the next week; if the decline expands, total selling pressure could reach as high as $65 billion. The operational logic of these trend-following hedge funds is simple: they automatically determine the direction of trend initiation using quantitative signals such as volume, price movement, or the speed of price changes. Prior to this round of decline, they had accumulated about $150 billion in long stock positions, but now they are facing the risk of a trend reversal. Additionally, Goldman Sachs reviewed history and pointed out that the last time the S&P 500 index fell below a similar important trend signal was in October of this year, and the previous instance occurred on April 2, when President Trump announced a large-scale tariff proposal. Market participants are concerned that if this selling pressure fully activates, it may make it even more difficult for U.S. stocks and global markets in the short term. Related reports: Taiwan's health insurance reform “dividends exceeding 20,000” incur an additional 2.11% tax, experts say: retail investors will turn to U.S. stocks or crypto assets. Crypto whale buy the dip bets on a rebound in the U.S. stock market next week, but the market still has divisions between bulls and bears. For the first time since 1996! The “fear index” sends a signal that the calm period for U.S. stocks will end? <Goldman Sachs warns: S&P 500 breaks key level at 6725, likely triggering $40 billion in selling pressure from CTA hedge funds next week> This article was first published on BlockTempo, the most influential Blockchain news media.