Goldman Partner: This Is Why S&P Will Make More All-Time Highs This Year

Goldman's sentiment and positioning indicator has turned more negative and is now around the 53rd-ile. Our Risk Appetite Indicator remains elevated, around 0.8. Equity flows have been resilient but fixed income flows have dominated on a YTD basis, particularly in relative terms. 

Most fast-moving positioning indicators have shifted more bearish. Futures positioning in US equities remains elevated, but is no longer at extremes, call/put ratios have decreased and investors' surveys have turned less optimistic. Active managers' US equity positioning (NAAIM Index - 79.7) has also pulled back modestly, while hedge funds have deleveraged meaningfully: gross leverage has reversed half of the yearly increase, and net leverage is down on the year.