“In general with the virus you have sudden quick reactions. They are typically a bit too quick to be captured by systematic models,” he said.

That’s not to say there’s no more selling to come from programmatic players. JPMorgan estimates volatility-targeting funds’ equity exposure stands at about the 75th percentile, while CTAs’ is around the 85th -- levels the strategists describe as “elevated (though not extreme).”

Nathan Thooft, head of global asset allocation at Manulife Asset Management, is on the look-out to see what these funds do before deciding whether to buy into any weakness.

“There is a risk of unwinding by systematic players that could lead to more downside,” said Thooft.

This article was provided by Bloomberg News.

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