70% systematic selling over after worst market rout: JPMorgan's Kolanovic

Volatility targeters will sell over a longer period of time than other systematic strategies

JPMorgan Chase & Co.’s Marko Kolanovic says the worst of the rout that’s wiped 4.1 per cent from the S&P 500 this week is likely over now that selling forced by computer-driven trading strategies has run its course.

Stocks halted a six-day slide -- the worst since February -- with the S&P 500 clinging to again that at one point Friday reached 1.7 per cent. The rout has been exacerbated by so-called commodity trading advisers and other systematic investors.

Systematic selling may be about 70 per cent over, Kolanovic said, and investors should buy the dip unless volatility continues higher.