S&P500 Trading Update 13/4/26

***QUOTING ES1! FOR CASH US500 EQUIVALENT LEVELS, SUBTRACT POINT DIFFERENCE***

WEEKLY BULL BEAR ZONE 6730/20

WEEKLY RANGE RES 6745/35 SUP 6955/75

April OPEX Straddle: 328.55pt range implies a OPEX to OPEX range of [6177, 6835]

June QOPEX Straddle is 546.4pt giving us a range of [5960,7052]

JHEQX Q2 Collar 6189/6290 - 6865/6955

DEC2025 OPEX to DEC2026 OPEX is 945 points giving us a range of [5889,7779]

SPX PUT/CALL RATIO 1.17 (The numbers reflect options traded during the current session. A put-call ratio below 0.7 is generally considered bullish, and a put-call ratio above 1.0 is generally considered bearish)

DAILY VWAP BULLISH 6756

WEEKLY VWAP BULLISH 6591

MONTHLY VWAP BULLISH 6816

DAILY STRUCTURE – OTFH - 6846

WEEKLY STRUCTURE – BALANCE - 6911/6359

MONTHLY STRUCTURE - OTFD - 6911

Balance: This refers to a market condition where prices move within a defined range, reflecting uncertainty as participants await further market-generated information. Our approach to balance includes favouring fade trades at the range extremes (highs/lows) while preparing for potential breakout scenarios if the balance shifts.

One-Time Framing Higher (OTFH): This represents a market trend where each successive bar forms a higher low, signalling a strong and consistent upward movement.

One-Time Framing Down (OTFD): This describes a market trend where each successive bar forms a lower high, indicating a pronounced and steady downward movement.

DAILY BULL BEAR ZONE 6845/55

GAMMA FLIP 6638

DAILY RANGE RES 6922 SUP 6789

2 SIGMA RES 6988 SUP 6722

VIX BULL BEAR ZONE 22

TRADES & TARGETS 

SHORT ON REJECT/RECLAIM OF DAILY BULL BEAR ZONE TARGET WEEKLY BULL BEAR ZONE

***ADDITIONAL SETUPS & TARGETS HIGHLIGHTED ON THE CHARTS***

(I FADE TESTS OF 2 SIGMA LEVELS ESPECIALLY INTO THE FINAL HOUR OF THE NY CASH SESSION AS 90% OF THE TIME WHEN TESTED THE MARKET WILL CLOSE ABOVE OR BELOW THESE LEVELS)

GOLDMAN SACHS TRADING DESK VIEW - ‘Weekend Thoughts’

2026 is a trading environment unlike any other — Jim Nantz, if he covered markets instead of green jackets.

1/ Equity beta comes back from the brink

2/ Geopolitical clarity drives a meaningful risk-on rotation

3/ CTA-related questions likely hit all-time highs tomorrow

4/ If the first-order moves are already priced, the key question becomes: where are the next pockets of opportunity?

Consensus: if you liked it before the conflict, you are going to love it now.

Good luck.

1/ A terrible month meets an exceptional week

Think escalator down, elevator up — and a reminder of why vol skew can feel “broken” in the academic sense.

• March 2026 saw long/short hedge funds decline -5%, their worst month in four years

• Last week (Apr 6–10) saw long/short hedge funds rise +4.4%, their best weekly performance in five years and a top-five weekly gain of the last decade

• The fear of the right tail across our client base was well founded and ultimately correct. Few owned it through convexity; most managed exposure through linear expressions

• Fun fact: there have been more daily S&P 500 rallies of >250 bps in the last two weeks than there have been >250 bps daily selloffs in the last year

• In this tape, single-session rallies are sharper than single-session declines

2/ Hedge fund positioning: geopolitical clarity encourages offense

• The global prime brokerage book was net bought for the first time in eight weeks, driven by both long buying and short covering at a 1.4-to-1 ratio — a clear risk-on signal

• The U.S. prime brokerage book saw macro product and ETF short covering at the fastest pace of the last decade — also risk-on

• The global prime brokerage book also saw significant net selling in single stocks this week, at 1.8 standard deviations, driven by short sales — another sign of active repositioning

• U.S. long/short gross exposure stands at 211.9, in the 77th percentile on a three-year lookback

• Net exposure stands at 51.6, only the 21st percentile on a three-year lookback

3/ Systematic positioning: slow-moving strategies may still have significant demand to cover

Data as of Thursday night; next update tomorrow at 8:00 a.m.

• It is a green sweep, with nearly every scenario pointing to meaningful CTA buying

• Over the last month, this cohort sold $115 billion of global equities

• Over the next month, assuming a flat tape, they are expected to buy back all of that and more, with projected demand of +$119.5 billion

• The demand is most concentrated in U.S. index products, with nearly $70 billion of aggregate buying expected across SPX (+$52 billion), NDX (+$10.4 billion), and RTY (+$6.1 billion) over the next month in a flat market

• SPX now sits above the short-term threshold (6720), medium-term threshold (6738), and long-term threshold (6410) for the first time since January

4/ If first-order trades are already priced, where are the next pockets of opportunity?

• Software

The semiconductor versus software basket hit an all-time low on Friday, with the pair trade down 22% last week alone. There may be real opportunity emerging from the wreckage. As P. Callahan noted this morning, two names stand out: NOW trades just below 9x GIR estimated potential GAAP EPS, while the implied valuation of MSFT M365 commercial/consumer sits at 4x EV / 2027 GAAP EBIT. This does not feel like a “buy the basket” setup — it feels like a single-stock picker’s market

• Non-U.S. equities

KOSPI was one of the market’s favorite longs heading into the conflict and still sits 7% below late-February levels — likely worth revisiting. Japan and Brazil also continue to offer strong fundamental backdrops and positive catalyst paths ahead, and we remain constructive there

• U.S. single names into earnings

Earnings season begins this week, with 8% of the S&P 500 reporting this week, 24% next week, and 36% the week after. Ben Snider and team stayed firm on earnings expectations even at the lows, with a base case of +12% EPS growth in 2026. Goldman Sachs is overweight Materials and Healthcare into Q1 prints and updated its conviction list as of April 1

• Rates

A negotiated resolution reduces the tail risk of higher commodity prices feeding into inflation. While the bar for rate cuts remains extremely high, the move in shorter-dated rates likely looks done for now. Lower-yield trades have worked — 1y1y