With Tuesday's 200-point drop in the Dow Jones Industrial Average breaking its upward run, the markets are due for at least a 5 percent correction from their highs, said Scott Redler, chief strategic officer at T3live.com.
"[This] is not the dip to buy," Redler said.
"At this particular point, it seems like there will be more downside movement here, versus getting involved for potential upside."
Redler said the S&P 500 will likely move to its 50-day moving average near 1,158. But if other European countries receive downgrades, or if other Wall Street banks get questioned on Capitol Hill, it could move closer to its 200-day moving average near 1,100.
"If that's the case we could see maybe a 9 percent to 10 percent correction," he said.
Redler said Tuesday's decline was the combination of downgrades on the credit ratings of Portugal and Greece, the congressional grilling of Goldman Sachs and the fact that the markets have retraced about 62 percent of their downward moves from 2007 to 2009.
"It put a lot of uncertainty out there, where traders just took money off the table," he said.
More Market Insight:
CNBC Data Pages:
CNBC's Companies in the News:
Disclosure information was not available for Redler or his company.