The S & P 500 surged by 5.85% last week, its best weekly performance going back to November 2022.
.SPX 3M mountain S & P 500 But a number of market participants are concerned the rally has more to do with short covering.
Of those instances, the S & P 500 was down five days after the move, by more than 1% on both an average and median basis.
Commodity trading advisors also accelerated short covering, notably turning short in the front end, according to a Bank of America note on Monday.
Elsewhere, Citi's Chris Montagu said S & P 500 futures positioning remains "moderately bearish" following the short-covering rally.
Persons:
Chris Senyek, Senyek, Goldman Sachs, BTIG's Jonathan Krinsky, Krinsky, Citi's Chris Montagu, Montagu, Wolfe Research's Senyek
Organizations:
Wolfe Research, Nasdaq, Bank, America, Federal