Power Play: U.S. Market Correction Ahead?

A general view of the Federal Reserve Building in Washington
Samuel Corum | Anadolu Agency | Getty Images

As the U.S. markets pare losses from earlier in the day, Mark Tepper of Strategic Wealth Partners believes that there's a correction looming.

"In the face of stretched valuations, fading economic momentum, and deteriorating earnings, it's going to be tough for the market to advance from here," said Tepper to CNBC's "Power Lunch". Mark Tepper believes that we're at the high-end of our comfort zone with valuations. He further explains that if we "add in a stronger dollar as well as looming interest rate hikes, this really creates the perfect storm for our first 10% correction since October 2011."

Tepper is keeping an eye on the banks, but particularly in housing sector."Banks and housing go hand in hand," he said. "Recent strength in pending home sales combined with a speed up in home prices indicate that the real estate market is showing signs of life."

Housing Starts for March were posted earlier this morning, up two percent from a month earlier. Single-family homes in particular climbed a steady four and a half percent.

"The positive impact of low interest rates is being felt by the masses, as reflected by the pickup in mortgage applications for both purchase and refinancing."

Mark Tepper favors financials,such as: Wells Fargo,JPMorgan,and KeyCorp.