The quicker the Band-Aid is ripped off the market, the quicker we recover, says market watcher

Wall Street investors have whiplash after what has been three wild sessions for the market.

The Dow sold off 666 points on Friday, suffered its worst point drop in history on Monday, and then saw a stunning point swing on Tuesday in a session that ended 567 points higher.

Despite the rally, Sam Stovall, chief investment strategist at CFRA, says investors should welcome another sell-off.

"Like ripping off a Band-Aid, the faster we go to the downside, the quicker we see a bottom and the quicker we get back to recovery," Stovall told CNBC's "Futures Now" on Tuesday.

Traditionally, corrections, defined as a 10 percent pullback from a 52-week high, find their bottom within a 90-day period.

But this isn't your traditional market. The S&P 500 fell into a pullback, marked by a decline of more 5 percent from its 52-week high, in just one session on Monday. The speed of its decline suggests to Stovall that a predicted correction could find its bottom 10 days earlier than normal.

That correction is a high possibility for Stovall. He expects an overall decline of 13 to 16 percent from the top reached on Jan. 26.

On a fundamental basis, Stovall points to the rule of 20, which measures the price/earnings ratio with inflation, put the stock market as overvalued by at least 13 percent. Then, on a technical level, he noted the S&P 500 was trading 14 percent higher than the 200-day moving average at its peak.

"We probably do need to experience more," he said. "If we don't, then I think we're just biding our time and we're delaying the eventual correction."

The likelihood of a correction grows as the midterm elections draw near. The second and third quarters of a midterm year are typically the worst performers of the 16-quarter presidential cycle. Votes for all seats in the House and a third of the Senate will be cast in November, a cause for uncertainty in the preceding months.

The S&P 500 is currently in a pullback, but has not yet reached a correction. By Tuesday's close, the benchmark index was down nearly 8 percent from its 52-week high hit roughly a week and a half ago. The Dow is closer to correction, having fallen 8.5 percent from its highs.

"It's healthy and it's way overdue," said Stovall. "I don't think this correction is over just yet."

Stovall has a 12-month target of 2,800 on the S&P 500, a level that implies a nearly 5 percent increase for the year. He is not as bullish as some others on the Street. Keith Parker at UBS has the highest price target at 3,150, while the median target sits at 3,000.

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