Nasdaq 100 Falls About 7% in October… Goldman Sachs Identifies Seven Warning Signals

Goldman Sachs derivatives strategist Brian Garrett flagged seven contrarian signals after the Nasdaq 100 fell roughly 7% in October, with tech selling persisting even as volatility and hedge fund positioning showed signs of adjustment. Garrett noted that while the index's drawdown from its peak was only about 3%, hedge fund risk exposure had been sharply reduced, suggesting some contrarian indicators are emerging. The S&P 500 closed the week ended October 30 down 0.6% at around 7,580, while the Philadelphia Semiconductor Index slipped below its 200-day moving average. The analysis, reported by WallstreetCN on November 2, matters because it suggests institutional de-risking may have run ahead of the price decline, potentially limiting further downside. Watch next for whether hedge fund positioning stabilizes and if the semiconductor index reclaims its 200-day moving average, key gauges of whether the tech selloff is exhausting.