"Five Warning Signs Are Flashing": Goldman Desk Warns Market Set For Pullback

"Fear went bid, sentiment went offered, volatility spiked, and yet the market “quietly” went back to making generational highs." That's how Goldman's Brian Garrett (who takes a quiet victory lap for his call last week on buying calls on most shorted stocks after the CAR meltup... and subsequent meltdown) summarizes the latest action in his must read Sunday afternoon "Weekend Prep" note (available to pro subs).

Ahead of what will be busiest week of the year, with both the Fed and BOJ, as well as 42% of the S&P reported, Garrett writes that "it is unclear if participants are excited or disappointed for this upcoming week … central bank decisions, earnings announcements, economic data prints … all of this means ES1 can trade on something other than the latest Pakistan headline or truth social tweet (though we’ll get plenty of those too)." As an aside, Wednesday will be one of the most concentrated earnings sessions in history (% of market cap reporting, charted below).