NEW YORK (TheStreet) -- After trading lower for much of Tuesday morning, stocks are nearing session highs in the afternoon. However, as U.S. stocks continue to decline toward key support levels, many investors are starting to worry about a possible correction.
Admittedly, Tony Dwyer, chief equity strategist and managing director at Canaccord Genuity Securities, said he's been too early when looking for a correction. However, he expects the Federal Reserve to hike interest rates sooner than most investors expect, causing a selloff in the equities market.
That said, Dwyer is also looking for a robust rebound following an impending correction in the stock market, with a year-end target of 2,340 for the S&P 500. Stocks still have "pretty solid fundamentals," he explained. Once a 5% pullback is in, he's a buyer of stocks, particularly in financials, consumer discretionary and technology.
U.S. stocks have been trapped in a "very narrow trading range," according to Josh Brown, CEO and co-founder of Ritholtz Wealth Management. It seems probable that U.S. stocks could go lower, or at least stagnate, while global equity markets continue to outperform.
Brown did acknowledge that a rebound in financial stocks is very good for the overall market.
"Technology already looks like it's starting to break down a little bit, at least from what we saw last week," said Pete Najarian, co-founder of optionmonster.com and trademonster.com.
Although technology stocks have become a concern, Najarian said he's "more encouraged by the way the financials are trading."
Joseph Terranova agreed, pointing out that financials have been the best performing sector so far this quarter. Terranova, a senior managing partner at Virtus Investment Partners, also said he see potential upside in utility stocks after the recent selloff.