JPMorgan 'Delta One' Team Warns Of "Technical Pause" In Meltup As Squeeze Sentiment Nears Record High

An extreme 'squeeze rally', the start of a defensive rotation, and a reversal in the momentum vs size trade are flashing warning signals for JPMorgan's Delta One team this morning.

They are calling for a "technical pause" in the market's melt-up.

Having correctly seen a change in the market cycle in early May (as predicted by a reversal in Momentum sentiment) - as defensive themes, elevated by the regional bank crisis, started to underperform as markets rotated into cyclicals.