CTA Tsunami Unleashes Sell-Off Storm

Breaching big levels

On April 10, in our thematic email, We are getting close to a CTA selling tsunami, we pointed out the "sensitive" set up and wrote: " Just a few points lower CTAs will for the first time this year start selling in size...to add insult to injury...we are breaking major trend-lines in equities and the gamma stabilizer is totally gone." Short term CTA threshold levels are kicking in big time according to GS. Medium term is 4873 (most important) while the long term level is at 4605.