US stocks face selling pressure, but Goldman Sachs says they have not seen extreme crowding in positions.

Since late March, the continuous rise of the US stock market has given investors many reasons to worry about the future. However, according to Goldman Sachs traders, extreme crowded positions are not the main concern. A key indicator that Goldman Sachs uses to measure overall market sentiment is currently hovering around 0.2, signaling that risk exposure is at a neutral level. This indicator tracks the risk exposure of institutions, retail investors, and foreign investors in the US stock market, covering about 80% of the market value of US stocks. Goldman Sachs traders, including Tom Shea, wrote in a report to clients that the indicator "suggests that this rally has not yet been fully embraced by market participants."