Stocks tumbled on the first day of the quarter and Dave Rovelli, managing director at Canaccord Adams, and Warren Meyers, CEO of Walter J. Dowd, said this may be an opportunity for bears to seize control.
“A pivotal number in the S&P is 1,040,” Rovelli told CNBC.
“It’s the bottom of the support of the uptrend wedge that we’ve had for the last few months. If we close before that, then we’re probably in for a 5 to 10 percent correction.”
In the meantime, Meyers said he expects the markets to continue their selloff.
“Included in that is a strong second quarter, up about 15 percent across the indicies," he said.
"We’ve got earnings in a couple of weeks and we’ve got a vacuum with the jobs numbers tomorrow. There’s not a whole lot to hang your hat on and so it’s a perfect opportunity for the bears to take hold for at least a week or two.”
CNBC Data Pages:
No immediate information was available for Meyers or Rovelli.
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