Stocks should move higher at year's end, but investors shouldn't jump wholeheartedly into the market just yet, JPMorgan's head of U.S. equity and quantitative strategy said Wednesday.
Dubravko Lakos-Bujas said technical selling pressure will likely continue throughout September as complex, automated trading platforms take advantage of market volatility. JPMorgan expects another $100 billion in outflows on the back of selling pressure, he said.
"We still think that the risk/reward for equities is not that attractive," he told CNBC's "Squawk on the Street." "Over the short term, perhaps take advantage of these dips to buy—partially, opportunistically—but I would still not be in favor of going fully fledged into the market in the short term."
The selling pressure will likely ease in the historically weak month of October, giving way to a move higher as traders focus on growth prospects for 2016, Lakos-Bujas said.
But for now, markets are locked in a tug of war between technical analysis and fundamental economic data.