“Price insensitive” flows are starting to materialize, and our goal is to estimate their likely size and timing. These technical flows are determined by algorithms and risk limits, and can hence push the market away from fundamentals. The obvious risk is if these technical flows outsize fundamental buyers. In the current environment of low liquidity, they may cause a market crash such as the one we saw at the US market open on Mondaay”
Source: JPM Head Quant Warns Second Market Crash May Be Imminent: Violent Selling Could Return On Thursday | Zero Hedge
