The 'selling crescendo' in stock market could end by Wednesday, says bull Art Hogan

Wall Street veteran Art Hogan isn't letting the Dow's worst ever one-day point loss alter his bullish forecast.

Hogan, chief market strategist at B. Riley FBR, suspects the markets will find a level of support by Wednesday.

"We're in that irrational, agnostic vertical selling, and it's largely machines and ETFs," Hogan said Monday on CNBC's "Trading Nation." "When that stops, some rational[ity] will come back into the market place."

He blames the historic sell-off on long-overdue volatility that began over jitters over rising interest rates.

And it isn't surprising Hogan. He warned investors late last year that the markets could run into trouble in 2018.

"The amazing part is we forget how fast markets come down," Hogan said. "Once stocks start selling like this, it's very difficult for anyone to get in the way. Whether it's ETFs or programs or machine trading or algorithms. It happens quickly."

According to Hogan, the gravitational pull of the sell-off is negatively impacting healthy areas such as financials, a group that is widely considered to be a winner in a rising interest rate environment.

Not only is global growth still robust, Hogan said, but a strong earnings picture and economic fundamentals will drive stocks back to record levels. He believes stock prices will be 10 percent higher by year's end.

"Right now, we're in that selling crescendo," he added. "People will sit back and say, 'Wait a minute, we've done too much, too fast to the downside,' and buyers come back."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

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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