CNBC Pro

Volatility could still be ahead for stocks, but strategists don’t foresee a major correction

Traders work on the floor of the New York Stock Exchange.
NYSE

Stocks are likely to be volatile over the next couple of weeks, as the sell-off in high flyers like Tesla and cryptocurrencies has soured investor sentiment.

But strategists say the market is more likely in a pullback and not entering a larger correction.

Bitcoin tumbled in volatile trading Wednesday. The cryptocurrency plunged to $30,000 overnight, a 30% decline and other crypto assets fell with it. By the end of the day, it was down 7.5%, just below $40,000, according to Coin Metrics.

The stock market took its early cue from bitcoin, ripping lower before reversing its worst losses

"It's very skittish. I think that's the word of the day," Fairlead Strategies founder Katie Stockton said. Wednesday "was a good reminder we're still in pullback mode. … I think it's definitely influenced retail sentiment."

More In Pro Insight

CNBC ProThe summer rally has been very bullish, but strategists say a big sell-off next month is possible
CNBC Pro'Pretty compelling value': Analyst picks his top global stocks to withstand slowing growth
CNBC ProTesla's valuation doesn't make sense until it hits this level, fund manager says