In today’s Goldman Mid-Day wrap, equities are making new lows as geopolitical risks continue to weigh on investor sentiment. The market is trading “geo-political risk on” with energy and other bond proxies outperforming, while tech, discretionary, and industrial stocks are down sharply. The Magnifi (GSX1MEGA Index) is underperforming again today, led by a decline in NVDA below its 50-day moving average.

Our flow of funds team reports that the systematic community is only 1.01% away from the SPX CTA short-term threshold levels, with S&P futures lower in the pre-market. This suggests that breaching these thresholds could trigger systematic supply and shift our current estimates.

In terms of activity levels, overall participation is down 10% versus the trailing two weeks, with market volumes flat versus the 10-day moving average. However, LO demand is 5% better to buy, driven by demand for healthcare, macro products, and consumer discretionary stocks.