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Strategist: Markets in 'no man's land'

Markets are currently in no man's land as investors try to get a better feel for the lay of the land, said Raymond James chief investment strategist, Jeffrey Saut, on Tuesday.

"I actually think we are in no man's land right here," he said in an interview on CNBC's "Squawk Box." He explained that traders are not inclined to make any big bets so late in the year, especially during an environment of uncertainty.

Saut is most concerned with the Dow theory sell signal that was created by the August stock market crash. The theory uses transportation and industrial indexes to gauge the strength and weaknesses of market moves. "There's only been one false Dow theory signal in the past 18 years and that was in the Flash Crash of May 2010," he said.

"From a fundamentals standpoint it's tough to make a huge downside case here, but anytime I get a Dow theory sell signal, it makes me nervous," he added.

Where does S&P end?

Dan Greenhaus, BTIG chief global strategist, said on Tuesday that the S&P 500 will probably end higher this year although not extraordinarily so.

He said that volatility associated with a possible Fed rate hike could lead to some pain for financial markets.

"The only question is how much volatility beyond what we've already experienced is there going to be? But volatility is not ultimately synonymous with further downside. You can have volatility and still push higher."

— CNBC's Jeff Cox contributed to this report.