This technical blip could morph into a solid buying opportunity just in time for earnings season: Raymond James

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 Wednesday, when both the S&P 500 and Dow closed below their 50-day moving averages for the first time since the week Donald Trump won the presidential election.

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."

There already seems to be skittishness surrounding stocks just hours before JPMorgan Chase, Citigroup and Wells Fargo become among the first major companies to report their latest quarterly results.

"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 market," Saut didn't seem too concerned. The idea is derived from a trend that stocks have been staying within 2 percent of their closing highs despite serious geopolitical risks overseas in areas such as Syria and North Korea.

"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.

He's most positive about financials and technology, which make up more than one-third of the S&P 500.

"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."

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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