Rally Reservations Positioning Signals Diverge

The S&P 500 has extended its winning streak to six weeks despite massive de-grossing by US hedge funds and record-breaking inflows into cash. Technical indicators like Dealer Gamma and single-stock skew suggest a melt-up environment similar to 2021 and early 2024.

Key Takeaways

• 1.The S&P 500 has completed its longest winning streak since 2024, closing green for six consecutive weeks.
• 2.Significant de-grossing is occurring in US Long/Short funds, with gross leverage hitting a one-year low of 206.4%.
• 3.Cash inflows have reached extreme levels, with $136bn entering the asset class, the largest weekly inflow since January 2026.

Table of Contents

• Streak
• Another de-grossing week
• Low gross
• Gross Leverage By Region
• Net Leverage By Region
• Dash for cash
• That GS indicator
• Gamma
• Skew comparable to other melt-ups
• Sector observations
• Healthcare
• Energy
• Software
• Mag7

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