Selling Extreme, Conviction Missing

Heavy selling, fading panic

Selling has reached extreme levels, but the market isn’t behaving like one in panic. Flows have been aggressive, yet volatility is softening into the weekend, while positioning and valuations are starting to look less stretched.

The result is a tricky setup: the unwind may have gone far, but conviction on what comes next remains low. Across assets, markets are no longer moving in one direction; they’re reacting, hesitating, and setting up for the next move.