JPMorgan's latest capital flow report indicates that the deleveraging process in US markets, which began in June, is still incomplete. Leveraged ETFs have seen a 34% contraction since their June peak, while market-wide leveraged ETFs have decreased by 13%. The report highlights ongoing pressure on US stocks, with leveraged products experiencing 'convexity decay' that could require three more months of market oscillations to stabilize. Despite a reduction in retail call option buying and hedge fund leverage ratios, margin account leverage remains high, comparable to peaks seen in late 2021 and mid-2018. While short-term volatility is expected to persist, JPMorgan suggests this may represent the final phase of deleveraging rather than a sign of worsening fundamentals. In the medium to long term, net demand from retail investors, CTAs, and sovereign wealth funds is projected to support the market, with an estimated annual net equity demand of $275 billion.