BofA: Systemic funds are gradually reducing their long positions in U.S. equities

Bank of America said that the rise of the S&P 500 and Nasdaq 100 is slowing, which may lead to CTAs starting to unwind as the price trend pulls back. Strategists, including Chintan Kotecha, wrote that CTA models show a slight decline in long positions on the SPX and NDX last week, with a similar gradual unwinding possible this week, while the stop-loss trigger points at SPX 4996 and NDX 17275 are still within reach. They noted that both the S&P 500 and Nasdaq 100 posted their first two-week losing streak since October last year, even though the S&P 500 hit a record high last week. The model shows that the CTA remains bullish on the Euro Stoxx 50 and Nikkei 225.