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Kristina Partsinevelos highlights important insights from Tony Pasquariello, a strategist at Goldman Sachs, on the current state of the equity market. He observes that broad equity support is fading as buybacks are expected to taper off in September.
Systematic traders have finished their buying spree, and long/short funds remain neutral. Despite this, US households continue to buy, although their demand is showing signs of cooling. Pasquariello's commentary suggests that the seasonal uptick seen over the summer is likely ending as various market players adjust their positions.