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A 'big puke' is coming in markets — Nick Colas breaks down new survey results that show queasiness

Correction to deepen, but market watcher Nick Colas says it’s no replay of 2008

A fresh poll suggests Wall Street optimism is very much alive — even as the and the Nasdaq fall into correction territory for the second time this year.

DataTrek Research's Nick Colas just finished a special market survey for the week ending March 31. It asked finance professionals what they're expecting, and the results were mixed.

In a sneak peek given to CNBC's "Trading Nation," Colas said a majority sees more market pain coming. But the findings also indicate most respondents expect 2018 to finish the year in the green.

"Investors are looking for a level. We're just not there yet," he said Monday. "The overwhelming majority, roughly 54 percent, thought that stocks would bottom somewhere between down 10 and down 20 percent from closing levels as of the end of last year."

Colas agrees with the results — predicting the latest pullback wasn't the big one and a "big puke" is ahead.

"Markets have been toppy for a while, valuations are quite high, and investors are looking for a better entry point," Colas said. "They expect more volatility to come."

Yet, once the market finds its bottom, a swift rise in the other direction could wash away losses.

"There wasn't a lot of pessimism that the overall year was going to be down, and in fact, the plurality of respondents said the market would still be up on the year," he said.

DataTrek's survey also signals sector leadership will see a change in 2018. Almost 29 percent of respondents see financials as the year's big winners — knocking technology out of the top spot.

Nick Colas of DataTrek Research weighs in on market sentiment