A veteran Wall Street strategist says the markets just dipped below a technical level, which could give investors a chance to pounce.
Raymond James' chief investment strategist, Jeffrey Saut, is referring to what happened on
Saut is characterizing it as a"very short-term red flag" — one which will likely morph into a solid buying opportunity as earnings season begins.
"It could indicate that we would finally get a test of that 2,270-2,280 level," Saut said Wednesday on CNBC's "Trading Nation." "If we get that, I'd put money to work."
"Complacency is pretty high right here," said Saut. "The S&P was trading around 2,350 in mid-February, and that's pretty much where it's traded up until the past few hours."
When asked about the notion that the markets are lodged in a "Taylor Swift-like shake it off
"I think you would have to watch out for a black swan event. If there was a nuclear incident with North Korea, that would certainly give you a 5 to 10 percent correction," he cautioned.
Yet Saut, who has about 25 percent of his money in cash right now, believes the odds of that kind of situation emerging are low. He's also optimistic that earnings season will bode very well for stocks.
"I'm expecting good things out of both of those sectors," Saut said. "Longer term, I still think we're in a secular bull market that has years left to run."