Wall Street Bull: The pullback is approaching

The economy is booming, but one of the largest bulls on Wall Street says it is approaching correction in the near future.

"History shows that when S & P's rates have risen recently, we have a 2% to 5% retracement in the context of the bullish market," said Tony Dwyer, chief strategist at Conaccord Genuity.

The S & P 500 added about 0.5%, closing at 2,820.40 on Tuesday, with profits from materials, telecoms and energy supplies.

However, Dwyer predicts a correction, and this adjustment may look like 5% to 10% downward.

"It's more than a pause," he said.

In spite of all the positive economic variables, Dwyer says investors should be cautious about entering the market at that moment, because the view of the nearby one would be "writhing", including the huge profit growth and high consumer confidence.

"We are on an overpriced market where only 52% of the S & P 500 shares are over their 10-day average, in a highly volatile year," says Dwyer.

Tony Dwyer recommends that investors do not rush by buying but instead wait for price declines.

"It's not a sale," he said. "This is wait to buy".

Source: CNBC

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