According to a note from Goldman Sachs onThursday, US equities are headed for another big sell-off if economic datafails to improve quickly to justify the latest leg of the rally.

Goldman's Cecilia Mariotti noted that "Inthe absence of clear signs of positive macroeconomic momentum, temporaryincrease in risk appetite may actually increase the chances of another downturnrather than signaling the end of a bear market."

The bank disappointed those investors who hopedthe 14% rally that kicked off in mid-June is the start of a new bull market,urging them to brace for another big sell-off if economic data doesn't showimmediate improvement.

This is especially true if the almost two-monthrise in stock prices was driven by systematic traders rather than fundamentalinvestors, as traders can get out of long positions more quickly and move intoa bear market.

But even subdued investor sentiment and traders'low equity exposure in 2022 are not enough for the market to reach asustainable bottom.

Mariotti urges not to rushand wait for further developments in the macroeconomic situation, given thediscrepancy in the pricing of growth stocks compared to the still heightenedrisk for investors in growth stocks, which the market is likely to face in thesecond half of the year. She noted that the bank continues to prioritize adefensive portfolio allocation for 3 months before expecting a sustained turnin the market.