After 1,350 days, will the Fed cause correction?

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

It's been about 1,350 days since the S&P 500 last fell 10 percent or more from its peak.

But that streak may end during the next three months as the Federal Reserve moves closer to hiking interest rates, according to estimates from more and more firms on Wall Street, including Bank of America Merrill Lynch and J.P. Morgan Monday.

Those who don't see a correction still tend to agree that market's fate this year is in the hands of the Fed, which is expected to make more hints in its statement Wednesday that it's ready for liftoff as early as September.

Recent losses like the drop on Monday pushed the Dow Jones Industrial Average into negative territory for 2015.

All is not lost for investors, however, as certain asset classes and stocks are set to make it through the selling with just a few dents, and then thrive as the central bank normalizes policy.