This week's sharp swings in the market may be just the beginning.
"I think we're going to be very choppy," David Dietze. Chief Investment Strategist at Point View Financial Services, told CNBC.com. "There's a lot of investors who found themselves more exposed to equities than they were comfortable with."
Volatility can be a plus for some investors such as hedge funds. But many analysts say typical investors who want to avoid extreme risks would be wise to remain on the sidelines, at least for now.
"There's no need to rush in," said Bill Strazzullo, Chief Market Strategist with Bell Curve Trading. "If this ends up being a good buying opportunity, you don't have to rush because any advances will be met with significant selling. So you want to be cautious."
"I would sit back and let the market settle unless it were to fall further to about a 5% correction from its earlier high," agreed Larry Adam, Investment Strategist at Duetsche Bank Private Wealth Management. "If the S&P drops to 1380 - 1390, stocks become very attractive."
Still, analysts say pullbacks can still be advantageous for long-term investors -- if they choose wisely.
"I remain convinced we will be higher by year-end," said David Dietze. Chief Investment Strategist at Point View Financial Services. "Depending on your time horizon, if you're not overexposed to stocks and you have liquidity, you can do some selective buying now--if you can stomach the volatility."
Dietze favors major energy stocks such as Exxon Mobil, ConcocoPhillips and Chevron and drillers, including Nabors Industries. Point view Financial Services owns all of these companies.