S&P 2,500 Before 2,300

Kevin Cook here for Reity over the next 3 market days...

Let's put this pullback from all-time highs in perspective: we've only dropped 2%. Barely a scratch as large investors with big gains take chips off the table during a predictable bout of volatility–that could become something more if tensions rise.

This brings me to my bigger perspective: we are probably not entering a large double-digit correction. Short of war, which is a fairly unpredictable event, the market has many more positive catalysts and will hit new highs before S&P 2299.

After crunching down through support at S&P 2,440-50 on more "missile polishing," the next likely target during heightened investor fear is the support zone around 2,400. That would give us a nice 3.5% pullback. We won't know more till we get there.

Bottom line: If you didn't take any profits up top, you can still make some small adjustments today. But bigger picture, you want to be ready to put cash to work for a real "buy the dip" opportunity at or below S&P 2,400. Stay tuned for details.

Best,

Kevin Cook

Senior Stock Strategist, Zacks Investment Research

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