Goldman Sachs said in a reportFortunejacknodepositbonusIf the stock market continues to fallFortunejacknodepositbonusHedge funds that follow the trend are likely to sell $20 billion to $42 billion in U. S. stocks in the coming month.

It is understood that hedge funds that follow the trend, also known as CTA (Commodity Trading Advisers), trade systematically to capture the general trend of the market.

Goldman Sachs said that if the S & P fell below 5135, "the short-term trend will shift from more positive to negative", triggering a sell-off for hedge funds that follow the trend.

In a report released on Friday, the bank said that if the S & P 500 index fell by 3% in the coming monthFortunejacknodepositbonusThe .2% focus CTA will be forced to sell about $20 billion of S & P 500 stocks and more than $200 billion of global stocks. If the S & P falls further, the total sell-off in the S & P could reach $42 billion.

Since April 11, the S & P 500 is down about 2. 5%.Fortunejacknodepositbonus.6%, due to stronger-than-expected prices and retail sales in the United States and renewed geopolitical concerns.

Overall, hedge funds sold US stocks for the second week in a row, mainly after investors were surprised by the strong consumer price index released last Wednesday, raising doubts about whether the Fed will start cutting interest rates soon.

In a separate report, Goldman Sachs said hedge funds bought Chinese stocks and sold U.S. energy stocks for the third week in a row.