The market sell-off will continue into next week, Wall Street bull Jeff Saut predicted Thursday on CNBC.
"Over the 50 years I've been in this business, one of my mantras has been, 'never on a Friday,'" the chief investment strategist at Capital Wealth Planning said on "Closing Bell."
"When you get into one of these panic moves on the downside, you rarely bottom on Fridays. The investors go home and brood over their losses and they show up on Monday and Tuesday in sell mode," Saut explained.
Saut said he believes the market may find its a sustainable, short-term bottom in the first part of next week.
All three major U.S. indexes ended Thursday into correction territory, which is defined on Wall Street as down more than 10% from their recent high.
The Dow Jones Industrial Average fell 4.4% Thursday, entering into a correction only 10 sessions removed from its all-time high. It's now 12% below its record high.
The S&P 500 and Nasdaq Composite set record highs last week, but on Thursday both indexes posted their biggest one-day loss since August 2011.
The steep sell-off comes as investors respond to growing concerns about the coronavirus' economic impact.
Saut said he believes investors do not need to panic and urged them to use caution. He said he thought there would be 'pretty darn good support for equities" in the S&P around "2800, 2900."
It closed Thursday at 2,978.76.
Saut said he thought the market was oversold and believed his long-term models would still indicate it remains a secular bull market.
"I'm going to be very interested to see what happens next week," Saut said.
What to buy
Saut said investors who have cash they want to put to work should look at chipmaker Qualcomm.
"5G is coming and you can't put the genie back in the bottle, and the stock has been beaten up a lot," he said.
Qualcomm shares closed Thursday down 4.67% at $75.94, which is 21% off its 52-week high of $96.17. It reached that level in January.
While it's down 13% year-to-date, it remains up 43.2% in the past 12 months.
