This sell-off could be the start of a bigger decline, says long-time market strategist Sam Stovall

Key Points
  • CFRA's Sam Stovall said the market has been flashing signs that it was highly overbought and the sell-off Thursday could be part of a bigger pullback.
  • Stovall said stocks could decline 5% to 10% off the June 8 peak.
  • Reopening trade stocks were particularly slammed, but Stovall said they should turn higher again after the market shakeout.
A woman walks in the rain outside the New York Stock Exchange (NYSE) in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York, April 13, 2020.
Andrew Kelly | Reuters

CFRA's Sam Stovall said the market sell-off appears to have further to go to the downside, as it pulls back from a rapid 45% move higher.

"It could end up shaving 5% to 10% off the June 8 peak," said Stovall, chief investment strategist and a market historian known for his analysis of past trends.