Kolanovic Says "Correction Has Further To Go" While JPM's Trading Desk Remains "Bullish"

On one hand, the technical storm appears to have subsided: as we predicted last night, just days after the biggest CTA shake-out in over a year (thanks to the fake Iran-Israel war, which on Thursday shook out all the sell stops thanks to the latest brutal bear trap, and thus paradoxically removed any residual selling pressure), other systematic funds finally stepped in to buy the dip, with vol control and Risk-Parity strategies both starting to add leverage back after a sharper unwind last week.

Add to that our reminder that the stock buyback blackout ends on Friday, which the algos immediately rushed to frontrun...