Suzuki said it would be normal for stocks to continue the selloff and see a 5 percent correction. "That's normal volatility. Investors should be comfortable with that. Over the next months, there's the possibility something could go wrong, whether it's geopolitical or a miscommunication by the Fed. But at this point, we don't see it but that could change," he said."Five percent pullbacks are quite common. They happen three times a year, but outside of recessionary periods, it's closer to two times. We think investors should take advantage to buy those dips."
Volatility also picked up in the past week with CBOE's volatility index, the VIX, jumping 34 percent for the week. Analysts have been expecting heightened volatility as the Fed gets closer to raising rates, as the markets adjust.
The market has not had a 10 percent or greater correction in two years. "If the market sells off 10 percent or more, history would tell you—unless we're going into a recession, it's almost always a great buying opportunity. iI's very difficult to get that double digit correction in the market without some fundamental shock which we don't see at this point," Suzuki said.
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Bank of America Merrill Lynch released its monthly sell side indicator Friday, a monthly reading of the views of Wall Street firms on asset allocation. It has shown an increasingly bearish view of stocks over the past few months. Suzuki said that indicator is a helpful contrarian tool. He said itshows that there is not complacency about the market. The average recommendation of the biggest firms is that investors hold 50.8 percent oftheir portfolio in stocks, down from 51.4 percent in June and below the long-term average of 60 percent.
"If you look at our sentiment gauge it tells you there's an incredible amount of skepticism in this rally. If you look at fund positioning, mutual fund positioning is the most defensive it's been in five years," he said.
Suzuki added that could also be a bullish sign.
"I don't think that there's any big fundamental reason for the selloff we've been seeing. Anecdotally, it seems to be driven more by ETF and hedge fund selling, more than the wholesale panic selling or forced selling by investors," he said.
What to Watch
Earnings: Marathon Oil, AIG, Vornado Realty, Tenet Healthcare, Cardinal Health, Reaology, Pioneer Natural Resources, HSBC
2:00 p.m. Senior loan officer survey
Earnings: Disney, CVS Caremark, Archer Daniels Midland, MGM Mirage, Michael Kors, Cablevision, Scotts Miracle-Gro, Time Inc., Frontier Communications, Groupon, Potbelly, Take Two Interactive, FireEye, First Solar, Zillow, Liberty Interactive, Liberty Media, Regeneron, Activision Blizzard, Toyota
10:00 a.m. ISM nonmanufacturing
10:00 a.m. Factory orders
Earnings: Time Warner, Mondelez International, Chesapeake Energy, Devon Energy, Viacom, AOL, Molson Coors Brewing, Devon Energy, DishNetworks, Ralph Lauren, Transocean, 21st Century Fox, Keurig GreenMountain, CenturyLink, Jack in the Box, Zulily, ING
8:30 am International trade
Earnings: Wendy's, Orbitz, CBS, Monster Beverage, News Corp, Nvidia, Mylan Labs, AMC Networks, Zynga, Lionsgate, Sprouts Farmers Market, Windstream,Duke Energy, Sempra Energy, Stratasys, Teradata, Computer Sciences, GreatPlains Energy
Weekly chain store sales
8:30 a.m. Initial claims
8:30 a.m. Consumer credit
Earnings: Brookfield Asset Management, Buckeye Partners,Petrobras
8:30 am Productivity and costs
10:00 a.m. Wholesale trade
—By CNBC's Patti Domm