- Wall Street will see a "relief rally" in stocks that would offer a better selling opportunity for investors, technical analyst Katie Stockton says.
- The rally would last for several weeks and would be up to 8 percent higher than where the markets closed on Friday, she says.
Wall Street will see a relief rally in stocks that would offer a better selling opportunity for investors, technical analyst Katie Stockton told CNBC on Monday.
"When we do see a relief rally, it should be significant," said Stockton, founder of Fairlead Strategies, which specializes in technical chart analysis. She added the rally would last for several weeks and would be up to 8 percent higher than where the markets closed on Friday.
Stockton, who did not offer a timeline for her prediction, joined " Squawk Box " following the biggest weekly loss in more than 10 years for the Dow Jones Industrial Average and Nasdaq and the largest for the S&P 500 since August 2011. Futures were indicating a lower open Monday, and stocks continue to be on pace for their worst year since 2008.
The Federal Reserve's interest rate hike last week and fears of an extended government shutdown have helped drive the latest sell-off.
Stockton said the sell-off in stocks appeared "orderly" until S&P 500 broke below 2,640 earlier this month, which sent a "bearish message" throughout Wall Street. "That's really when you saw the market accelerate to the downside," she said.
The S&P 500 could see a low as much as 2,250, about 7 percent lower from where it closed Friday, Stockton said.
Alison Deans, founder of AA Deans Advisory, told CNBC she thinks stocks are "attractively priced" but news, including a report that President Donald Trump considered firing Fed Chairman Jerome Powell, could push stocks lower.
Deans recommended that investors look at more "conservative" stocks for now, including in health care and consumer staples.
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