NEW YORK (TheStreet) -- All three major U.S. indices are lower on Monday, with the Nasdaq leading the way. So is this the correction investors have been awaiting?
Mark Newton, chief market technician for Greywolf Equities, told TheStreet's Debra Borchardt that for now the current market pullback seems to only be short term. The broader trends are still intact and the indices are likely to bounce back in the next several weeks, which would represent a good buying opportunity.
Specifically, Newton suggested investors watch the 1,755 level in the S&P 500 for support, which are near the lows made in December.
Technology and financial stocks have reported relatively strong earnings reports, which is good news for the bulls, especially as valuation concerns come into the picture.
Newton pointed out that fear has quickly escalated, evident by the 50% move higher in the CBOE Volatility Index (VIX.X) in the past week.
Newton concluded that a rally into March or April seems logical, with equities underperforming in the May through September period.
-- Written by Bret Kenwell in Petoskey, Mich.