Systematic buyers are preparing to reload on stocks after a massive unwind, according to Citadel Securities. The firm’s quantitative trading desk noted that the recent deleveraging—estimated at $50 billion across equity futures and ETFs—has largely run its course. Momentum and trend-following strategies have been reset to neutral or slightly long positions.\n\nThis signals a potential reversal of the selling pressure that dominated markets last week. Systematic buyers, including commodity trading advisors (CTAs) and risk-parity funds, are expected to add exposure if volatility continues to decline.

Citadel Securities highlighted that the S&P 500 could benefit from this rotation.\n\nThe firm’s analysis suggests the unwind was one of the largest in 2025, comparable to past volatility events. With positioning now lean, the next move may be upward as algorithms re-enter. The timing remains tied to market stability and further easing of macro headwinds.