nvesting.com -- In a note to clients on Wednesday, Goldman Sachs analysts raised the possibility that their 6000 price target for the S&P 500 might actually be "too low," signaling even more bullish sentiment for U.S. equities as the year progresses.
According to Goldman Sachs, they expect a strong rally starting on October 28, despite current short-term market turbulence.
However, the near-term outlook is more cautious. Goldman Sachs warns of heightened volatility over the next three weeks, predicting that the market will react heavily to daily headlines.
The bank wrote that it is "bracing for added volatility and the market to over-trade daily headlines and themes."
The analysts note a significant drop in S&P 500 index gamma, which has declined by $14 billion, the largest shift in its dataset.
This suggests that the market has more freedom to move, and according to Goldman, it could lead to a downside skew in the short term.
