Morgan Stanley Quant Team: MS QDS notes that while the market recovery and vol compression are impressive, they are not enough to force material buying from systematic strategies (Vol Target Funds and Trend Following CTAs). To generate meaningful demand from Trend Followers, the S&P 500 would have to rally closer to 2900 (50d moving average, and many strategies wouldn’t even buy until prices are higher) and Vol Target Funds would only buy once falls down to 20 to 30% – and stays there. But volatility generally falls much more slowly than it rises, and history suggests that it could take several months for volatility to reset to ‘normal’ (sub-20) levels. After previous peaks in volatility, it took an average of 6 to 7 months for VIX to fall back down below 20.